February 11, 2019 (MLN): As of February 2, 2019, the government sector’s cumulative net borrowing in the seven months of FY19, reached a sum of Rs.734.9 billion while net borrowing for budgetary support in particular touched Rs.861.3 billion.
The State Bank of Pakistan (SBP)’s data release on Monetary Aggregates further divulged that the government has accumulated another Rs.5 billion net as debt for budgetary support over the week, as last week’s net borrowed amount was Rs.805.9 billion.
The amount borrowed this year is a massive leap from that borrowed last year which was Rs.334.7 billion.
The two main lenders that extend budgetary support to the government are SBP and Scheduled Banks. According to the data, SBP has lent a net amount of Rs.3.9 trillion in FY19, another gigantic leap from last year’s net loan of Rs.708 billion from the central bank.
However, the government has retired a net of Rs.3 trillion to the commercial banks as well.
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