July 23, 2019 (MLN): The government of Pakistan has retired a net sum of Rs.96 billion in the first two weeks of new fiscal year 2020, a breakdown of which shows that Rs.130.47 billion were retired during the week ended July 12, 2019 alone and Rs.34.3 billion were borrowed in the first week.
According to the State Bank of Pakistan's weekly estimates in this regard, this year's overall net retirement as of this week has increased by Rs.87.18 billion over the year as last year's net retirement for the same period stood at Rs.9 billion.
The government sector borrowings are divided into three broad categories based on the purpose of loan which are budgetary support, commodity operations and others.
The two biggest source of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks.
During the two weeks of current fiscal year, the central bank has lent out a net sum of Rs.285.72 billion to the government, out of which the Federal Government borrowed Rs.301.15 billion whereas, the Provincial Government retired Rs.8.95 billion, AJK Government retired Rs.4.58 billion, and the GB Government retired Rs.1.89 billion.
On the other hand, the Scheduled Banks have been retired a net of Rs.368.79 billion by the Federal Government.
