The government of Pakistan has added an additional debt of Rs1.46 billion during the week ended March 08, 2024, as per the central bank’s weekly estimates. This brings the total net borrowing for the ongoing fiscal year 2024 to a significant Rs3.4 trillion. It’s noteworthy that government borrowings for the current fiscal year have consistently surpassed levels seen in previous years.

BREAKDOWN OF BORROWINGS:

Government sector borrowings are categorized into three main segments based on the purpose of the loan:

  1. Budgetary Support: Weekly net borrowing for budgetary support amounted to Rs32.26 billion.
  2. Commodity Operations: Retirement off commodity operations stood at Rs29.63 billion.
  3. Others: Rs1.17 billion was retired off others during the week.

CUMULATIVE BORROWINGS:

The cumulative borrowing for the current fiscal year 2024 stands at:

  • Rs3.76 trillion for budgetary support
  • Rs352.81 billion retirement off commodity operations
  • Rs0.31 billion borrowing for others

FINANCING SOURCES FOR BUDGETARY SUPPORT:

The two major sources of financing for budgetary support are the State Bank of Pakistan (SBP) and the Scheduled Banks.

  • The government has paid off a net sum of Rs757.46 billion to the central bank this fiscal year. Out of this, the Federal Government retired Rs411.9 billion, while the Provincial Government retired Rs317.1 billion. Additionally, the AJK Government retired Rs23.09 billion, and the GB Government retired Rs5.36 billion.
  • Scheduled Banks have lent out a net total of Rs4.51 trillion. Of this amount, the Federal Government borrowed Rs4.69 trillion, while the Provincial Government retired Rs175.84 billion.

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