Govt retires Rs84bn debt in a week

February 06, 2024 (MLN): The government of Pakistan has retired a debt of Rs84.34 billion during the week ended January 26, 2024, which brings its total net borrowing for ongoing fiscal year 2024 to Rs2.34 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 Rs30.68bn, while the retirement off commodity operations stood at Rs53.24bn.

Similarly, a total of Rs422.79m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2024 to Rs2.6 trillion for budgetary support, Rs262.4bn retirement off Commodity Operations, and Rs0.73bn 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 Rs1.44 trillion to the central bank, out of which the Federal Government retired Rs1.21 trillion whereas, the Provincial Government retired Rs219.36bn, AJK Government retired Rs10.47bn, and the GB Government borrowed Rs1.19bn.

On the other hand, the Scheduled Banks have lent out a net total of Rs4.04tr out of which the Federal Government borrowed Rs4.13tr while the Provincial Government retired Rs90.41bn.

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