Govt borrows Rs276bn debt in a week

October 21, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs276 billion during the week ended October 11, 2024, which brings its total net retirement for ongoing fiscal year 2025 to Rs1.26 trillion, according to the central bank's weekly estimates.

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 Rs275.47bn, while the retirement off commodity operations stood at Rs0.81m.

Meanwhile, a total of Rs531.26m was borrowed for others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs1.02 trillion for budgetary support, Rs242.22bn retirement off Commodity Operations, and Rs2.02bn retirement off others.

The two biggest sources of financing for budgetary support are the State Bank of Pakistan and the scheduled banks.

This fiscal year, the government has borrowed a net sum of Rs579.64bn from the central bank, out of which the Federal Government borrowed Rs550.13bn whereas, the Provincial Government borrowed Rs56.66bn, AJK Government retired Rs20.58bn, and the GB Government retired Rs6.57bn.

On the other hand, the government has retired a net total of Rs1.6tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.51tr while the Provincial Government retired Rs84.46bn.

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