Govt borrows Rs343.8bn debt in a week

June 21, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs343.81 billion during the week ended June 07, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs6.24 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.

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 Rs330.65bn, while the borrowing for commodity operations stood at Rs13.18bn.

Meanwhile, a total of Rs19.75m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs6.36 trillion for budgetary support, Rs122.2bn retirement off Commodity Operations, and Rs5.49bn 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 Rs764.32bn to the central bank, out of which the Federal Government retired Rs468.64bn whereas, the Provincial Government retired Rs254.08bn, AJK Government retired Rs34.97bn, and the GB Government retired Rs6.63bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs7.13tr out of which the Federal Government borrowed Rs7.39tr while the Provincial Government retired Rs261.27bn.

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