Govt borrows Rs277bn debt in a week

January 06, 2025 (MLN): The government of Pakistan has acquired an additional debt of Rs276.7 billion during the week ended December 27, 2024, which brings its total net retirement for ongoing fiscal year 2025 to Rs2.36 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 Rs276.46bn, while the borrowing for commodity operations stood at Rs537.28m.

Meanwhile, a total of Rs295.95m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs2.14 trillion for budgetary support, Rs216.58bn retirement off Commodity Operations, and Rs2.29bn 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 paid off a net sum of Rs622.85bn to the central bank, out of which the Federal Government retired Rs154.16bn whereas, the Provincial Government retired Rs439.61bn, AJK Government retired Rs20.73bn, and the GB Government retired Rs8.35bn.

On the other hand, the government has retired a net total of Rs1.52tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.38tr while the Provincial Government retired Rs141.53bn.

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