Govt borrows Rs276.5bn debt in a week

May 08, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs276.55 billion during the week ended April 26, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs4.78 trillion, according to the central bank's weekly estimates.

Government borrowings for the current fiscal year have consistently remained higher in comparison to previous years.

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The government sector borrowings are divided into three broad categories based on the purpose of loan which are budgetary support, commodity operations, and others.

Split three ways between these broad categories, the weekly net borrowing for budgetary support was Rs230.84bn, while the borrowing for commodity operations stood at Rs45.76bn.

Meanwhile, a total of Rs54.82m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs5.07 trillion for budgetary support, Rs283.57bn retirement off Commodity Operations, and Rs2.64bn retirement off others.

The two biggest source of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks.

This fiscal year, the government has paid off a net sum of Rs735.22bn to the central bank, out of which the Federal Government retired Rs425.15bn whereas, the Provincial Government retired Rs294.54bn, AJK Government retired Rs17.89bn, and the GB Government borrowed Rs2.36bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs5.8tr out of which the Federal Government borrowed Rs5.96tr while the Provincial Government retired Rs159.99bn.

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