Govt pays off Rs165.8bn debt in a week

August 27, 2024 (MLN): The government of Pakistan has retired a debt of Rs165.84 billion during the week ended August 16, 2024, which brings its total net borrowing for ongoing fiscal year 2025 to Rs152.58bn, 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 retirement off budgetary support was Rs164.1bn, while the retirement off commodity operations stood at Rs1.35bn.

Similarly, a total of Rs387.07m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2025 to Rs392.37bn for budgetary support, Rs238.18bn retirement off Commodity Operations, and Rs1.61bn 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 Rs123.25bn from the central bank, out of which the Federal Government retired Rs125.56bn whereas, the Provincial Government borrowed Rs272.16bn, AJK Government retired Rs12.71bn, and the GB Government retired Rs10.65bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs269.11bn out of which the Federal Government borrowed Rs292.63bn while the Provincial Government retired Rs23.51bn.

Copyright Mettis Link News