Pak-govt retires Rs.29.7 billion (net) in a week

April 29, 2019 (MLN): The government of Pakistan was Rs.749.9 billion (net) in debt as of April 19, 2019 for the fiscal year 2019, having retired a net sum of Rs.29.7 billion in a week as the prior week recorded a net loan worth Rs.779.6 billion (figure revised by SBP).

As per the State Bank of Pakistan (SBP)’s weekly report on factors affecting broad money, the total net borrowing during the same period last year was Rs.737.12 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.

Up until last week, the total net borrowing for budgetary support was Rs.917.13 billion, for other purposes was Rs.3.35 billion whereas Rs.170.5 billion were retired off commodity operations.

Under budgetary support, Rs.3.26 trillion (net) have been borrowed from SBP, while up to Rs.2.3 trillion (net) of Scheduled banks have been retired during the aforesaid period.

The federal government’s share in budgetary borrowing from SBP is Rs.3.5 trillion whereas Provincial government retired Rs.269.5 billion, AJK government retired Rs.10.14 billion and Gilgil Baltistan retired Rs.7 billion.

On the other hand, the federal government retired Rs.2.3 trillion of scheduled banks whereas provincial government retired Rs.23.6 billion.

This shows that the federal government borrowed from the SBP to repay the scheduled banks, thereby relying more on the central bank.

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