Govt borrows Rs374.6bn debt in a week

June 26, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs374.57 billion during the week ended June 14, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs6.61 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 Rs370.08bn, while the borrowing for commodity operations stood at Rs4.81bn.

Meanwhile, a total of Rs324.33m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs6.73 trillion for budgetary support, Rs117.39bn retirement off Commodity Operations, and Rs5.82bn 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 Rs770.83bn to the central bank, out of which the Federal Government retired Rs609.69bn whereas, the Provincial Government retired Rs124.24bn, AJK Government retired Rs32.27bn, and the GB Government retired Rs4.63bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs7.5tr out of which the Federal Government borrowed Rs7.77tr while the Provincial Government retired Rs261.27bn.

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