Govt borrows Rs377.5bn debt in a week

August 19, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs377.5 billion during the week ended August 02, 2024, which brings its total net borrowing for ongoing fiscal year 2025 to Rs132.37bn, 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 Rs375.25bn, while the borrowing for commodity operations stood at Rs2.5bn.

Meanwhile, a total of Rs259.56m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2025 to Rs327.18bn for budgetary support, Rs193.54bn retirement off Commodity Operations, and Rs1.28bn 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 borrowed a net sum of Rs41.49bn from the central bank, out of which the Federal Government retired Rs76.15bn whereas, the Provincial Government borrowed Rs140.37bn, AJK Government retired Rs15.12bn, and the GB Government retired Rs7.6bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs285.69bn out of which the Federal Government borrowed Rs307.73bn while the Provincial Government retired Rs22.04bn.

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