Govt retires Rs228.4bn debt in a week

July 25, 2024 (MLN): The government of Pakistan has paid off a debt of Rs228.41 billion during the week ended July 12, 2024, which brings its total net borrowing for ongoing fiscal year 2025 to Rs212.02bn, 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 Rs126.32bn, while the retirement off commodity operations stood at Rs101.26bn.

Similarly, a total of Rs830.23 million was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs91.98bn for budgetary support, Rs119.16bn retirement off Commodity Operations, and Rs0.89bn retirement off 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 borrowed a net sum of Rs50.19bn from the central bank, out of which the Federal Government borrowed Rs7.99bn whereas, the Provincial Government borrowed Rs43.64bn, AJK Government retired Rs1.33bn, and the GB Government retired Rs0.11bn.

On the other hand, the Scheduled Banks have retired a net total of Rs142.17bn out of which the Federal Government retired Rs142.17bn while the Provincial Government retired Rs0bn.

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