Govt pays off Rs698bn debt in a week

November 02, 2024 (MLN): The government of Pakistan has retired a debt of Rs697.6 billion during the week ended October 25, 2024, which brings its total net retirement for ongoing fiscal year 2025 to Rs2.08 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 retirement off budgetary support was Rs734.5bn, while the borrowing for commodity operations stood at Rs36.82bn.

Meanwhile, a total of Rs80.04m was borrowed for others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs1.87 trillion for budgetary support, Rs206.45bn retirement off Commodity Operations, and Rs1.98bn retirement off others.

The two biggest sources 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 Rs256.88bn from the central bank, out of which the Federal Government borrowed Rs467.08bn whereas, the Provincial Government retired Rs186.6bn, AJK Government retired Rs19.41bn, and the GB Government retired Rs4.19bn.

On the other hand, the government has retired a net total of Rs2.12tr to scheduled banks. Out of this amount, the Federal Government retired Rs2.04tr while the Provincial Government retired Rs84.46bn.

Copyright Mettis Link News