Govt borrows Rs74.2bn debt in a week

July 02, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs74.2 billion during the week ended June 21, 2024, which brings its total net borrowing for ongoing fiscal year 2025 to Rs6.68 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 Rs72.89bn, while the borrowing for commodity operations stood at Rs1.6bn.

Meanwhile, a total of Rs292.51m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2025 to Rs6.81 trillion for budgetary support, Rs115.79bn retirement off Commodity Operations, and Rs6.11bn 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 Rs678.86bn to the central bank, out of which the Federal Government retired Rs296.53bn whereas, the Provincial Government retired Rs349.95bn, AJK Government retired Rs30.42bn, and the GB Government retired Rs1.96bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs7.49tr out of which the Federal Government borrowed Rs7.75tr while the Provincial Government retired Rs261.27bn.

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