Govt retires Rs162.9bn debt in a week

February 27, 2024 (MLN): The government of Pakistan has retired a debt of Rs162.87 billion during the week ended February 16, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs2.58 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 Rs142.74bn, while the retirement off commodity operations stood at Rs18.18bn.

Similarly, a total of Rs1.95bn was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs2.87 trillion for budgetary support, Rs283.49bn retirement off Commodity Operations, and Rs0.85bn 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 trillion to the central bank, out of which the Federal Government retired Rs862.17bn whereas, the Provincial Government retired Rs116.58bn, AJK Government retired Rs18.34bn, and the GB Government retired Rs3.89bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs3.87tr out of which the Federal Government borrowed Rs4.05tr while the Provincial Government retired Rs182.38bn.

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