Govt borrows Rs293bn debt in a week

January 19, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs292.7 billion during the week ended January 05, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs2.49 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 Rs255.99bn, while the borrowing for commodity operations stood at Rs36.8bn.

Meanwhile, a total of Rs87.35m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs2.68tr for budgetary support, Rs192.35bn retirement off Commodity Operations, and Rs1.15bn borrowing for 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 Rs952.94bn to the central bank, out of which the Federal Government retired Rs814.32bn whereas, the Provincial Government retired Rs124.81bn, AJK Government retired Rs11.34bn, and the GB Government retired Rs2.47bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs3.63tr out of which the Federal Government borrowed Rs3.72tr while the Provincial Government retired Rs90.41bn.

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