Govt borrows Rs360bn debt in a week

February 15, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs359.86 billion during the week ended February 02, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs2.7 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 Rs352.26bn, while the borrowing for commodity operations stood at Rs5.51bn.

Similarly, a total of Rs2.1bn was borrowed for others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs2.95 trillion for budgetary support, Rs256.89bn retirement off Commodity Operations, and Rs2.82bn borrowing for 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 Rs1.05 trillion to the central bank, out of which the Federal Government retired Rs858.06bn whereas, the Provincial Government retired Rs178.05bn, AJK Government retired Rs18.05bn, and the GB Government borrowed Rs0.7bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs4.01tr out of which the Federal Government borrowed Rs4.1tr while the Provincial Government retired Rs90.41bn.

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