Govt retires Rs150bn debt in a week

January 31, 2024 (MLN): The government of Pakistan has retired a debt of Rs150.6 billion during the week ended January 19, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs2.424 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 retirement of budgetary support was Rs135.21bn, while the retirement of commodity operations stood at Rs15.43bn.

Meanwhile, a total of Rs47.28m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs2.63tr for budgetary support, Rs209.164bn retirement off Commodity Operations, and Rs1.15bn borrowing for 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 paid off a net sum of Rs1.268 trillion to the central bank, out of which the Federal Government retired Rs959.55bn whereas, the Provincial Government retired Rs299.78bn, the AJK Government retired Rs9.4bn, and the GB Government retired Rs563.03m.

On the other hand, the Scheduled Banks have lent out a net total of Rs3.9tr out of which the Federal Government borrowed Rs3.99tr while the Provincial Government retired Rs90.41bn.

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