Govt retires Rs170.6bn debt in a week

January 10, 2024 (MLN): The government of Pakistan has retired a debt of Rs170.58 billion during the week ended December 29, 2023, which brings its total net borrowing for ongoing fiscal year 2024 to Rs2.3 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 Rs205.06bn, while the borrowing for commodity operations stood at Rs34.48bn.

Meanwhile, a total of Rs34.48bn was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs2.53 trillion for budgetary support, Rs229.15bn retirement off Commodity Operations, and Rs1.24bn 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 Rs1.65 trillion to the central bank, out of which the Federal Government retired Rs1.38 trillion whereas, the Provincial Government retired Rs251.6bn, AJK Government retired Rs13.28bn, and the GB Government retired Rs4.59bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs4.18 trillion out of which the Federal Government borrowed Rs4.28 trillion while the Provincial Government retired Rs108.18bn.

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