Govt sector borrowing escalates to Rs 908 billion in a week

May 8, 2019 (MLN): The government sector of Pakistan has borrowed a net sum of Rs. 908 billion from various sources as of April 26, 2019.

In accordance with the weekly data provided by State Bank of Pakistan, this sum was around Rs. 158.1 billion higher as compared to prior week’s borrowing of Rs. 749.9 billion. Similarly, the total net borrowing for this period was nearly Rs. 95 billion larger than that of the same period last year i.e. Rs. 813 billion.

The government sector borrowings are divided into three broad categories based on the purpose of loan, which are budgetary support, commodity operations and others.

The net borrowing budgetary support was Rs. 1.07 trillion, amongst which the Central Bank lent out a net of Rs. 3.2 trillion to the government sector during this period.

Within the total borrowing from SBP, the federal government borrowed Rs. 3.4 trillion, while provincial government paid off Rs. 254.9 billion, AJK government paid off Rs. 9.5 billion and Gilgit Baltistan retired Rs. 5.7 billion.

The other main source of loan for budgetary support were scheduled banks, which retired Rs. 2.1 trillion during the current fiscal year. The major portion of loan from scheduled banks was retired by the federal government, i.e. Rs. 2.1 trillion.

The net borrowing for other purposes was Rs. 1.7 billion, while on the other hand a net sum of Rs. 166.7 billion was retired off via commodity operations.

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