Govt borrows Rs39bn debt in a week

September 02, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs39.21 billion during the week ended August 23, 2024, which brings its total net borrowing for ongoing fiscal year 2025 to Rs191.78bn, 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 Rs39.75bn, while the retirement off commodity operations stood at Rs411.83m.

Meanwhile, a total of Rs127.41m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2025 to Rs432.11bn for budgetary support, Rs238.59bn retirement off Commodity Operations, and Rs1.74bn 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 Rs124.78bn to the central bank, out of which the Federal Government retired Rs283.45bn whereas, the Provincial Government borrowed Rs182.74bn, AJK Government retired Rs14.06bn, and the GB Government retired Rs10.01bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs556.9bn out of which the Federal Government borrowed Rs580.41bn while the Provincial Government retired Rs23.51bn.

Copyright Mettis Link News