October 19, 2020 (MLN): Pakistan's outstanding debts as of September 30, 2020 stand at a heaping sum of Rs.23 trillion whereas total debt at the end of prior month was Rs.22.67 trillion, meaning that around Rs.332.42 billion were additionally borrowed during this month alone.
As compared to the same period last year when outstanding credit was Rs.20.36 trillion, the current debt position is Rs.2.64 trillion higher this time around, marking a year-on-year expansion of 12.95 percent.
The country's total credit accumulation during the 3 month period (Jun-Sep), has widened by Rs.18.83 billion as the total outstanding debt at the beginning of ongoing fiscal year June 30, 2020, stood at Rs.22.98 trillion. This means that Pakistan's outstanding debts have broadened by 0.08 percent this fiscal year.
The total outstanding credit is branched into the amount accumulated by government sector and that accumulated by the non-government sector. Out of the total outstanding loan, credit given to the government sector accounts for Rs.15 trillion while credit to non-government sectors account for Rs.8 trillion.
Credit to Government Sector:
The State Bank of Pakistan’s net credit to the government sector amounts to Rs.6.24 trillion which includes investments in government securities and government deposits, and other direct loans. During these 3 months, the central bank has been retired a sum of Rs.301.85 billion or 4.61 percent.
Meanwhile, the second largest source of financing for the sector, the Scheduled Bank's net credit adds up to Rs.8.76 trillion which is Rs.379.39 billion higher than the outstanding credit at the beginning of the fiscal year thus indicating that the sector accumulated additional loan during the period.
Credit to Non-Government Sector:
The State Bank’s claim to outstanding credit of this particular sector is comparatively negligible (only Rs.25.19 billion), while on the b-side, scheduled banks have a claim to up to Rs.7.97 trillion as of the end of this month.
At the end of previous month (August 2020), the outstanding amount owed to these banks was Rs.7.93 trillion indicating that Rs.41.94 billion were additionally borrowed during the month whereas during ongoing fiscal year, Rs.58.35 billion were retired.
Copyright Mettis Link News