Govt borrows Rs86bn debt in a week

January 24, 2024 (MLN): The government of Pakistan has acquired an additional debt of Rs86.28 billion during the week ended January 12, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs2.57 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 Rs87.7bn, while the retirement off commodity operations stood at Rs1.37bn.

Meanwhile, a total of Rs48.4m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs2.77 trillion for budgetary support, Rs193.72bn retirement off Commodity Operations, and Rs1.1bn 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 Rs954.56bn whereas, the Provincial Government retired Rs77.73bn, AJK Government retired Rs11.17bn, and the GB Government retired Rs2.05bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs3.81tr out of which the Federal Government borrowed Rs3.9tr while the Provincial Government retired Rs90.41bn.

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