Govt’s debt increases by Rs114.25 billion with recent borrowings

WEB DESK: The government of Pakistan has incurred an additional debt of Rs114.25 billion during the week ending May 17, 2024, according to the State Bank of Pakistan’s (SBP) weekly report.

This latest borrowing pushes the total net borrowing for the ongoing fiscal year 2024 to Rs5.49 trillion.

The trend of government borrowing for the current fiscal year has consistently exceeded previous years, indicating a significant increase in financial requirements.

Government borrowings are categorised into three main areas: budgetary support, commodity operations, and others. Of the recent borrowings, Rs91.1 billion was allocated for budgetary support, while Rs23.33 billion was designated for commodity operations.

Additionally, Rs176.35 million was retired from other obligations during the week.

Consequently, the cumulative borrowing for the fiscal year 2024 now stands at Rs5.66 trillion for budgetary support. There has been a retirement of Rs162.53 billion from commodity operations, and Rs3.29 billion from other categories.

The primary sources of financing for budgetary support are the State Bank of Pakistan and the scheduled banks, which continue to play crucial roles in supporting the government’s financial needs.

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