Govt retires nearly Rs72 billion debt in one week: SBP report

WEB DESK: In the week ending 26 July 2024, the government of Pakistan retired Rs71.96 billion of debt, as reported by the State Bank of Pakistan (SBP). This move brings the total net borrowing for the fiscal year 2025 to Rs192.55 billion.

Government borrowings are categorised into three main areas: budgetary support, commodity operations, and other uses.

In the past week, the government made a net repayment of Rs88.4 billion for budgetary support, while borrowing for commodity operations amounted to Rs16.53 billion. Additionally, Rs96.81 million was repaid under the ‘others’ category.

For the fiscal year 2025, the cumulative borrowing is now detailed as follows:

– Budgetary support: Rs4.52 billion

– Commodity operations: Rs196.04 billion

– Other categories: Rs1.02 billion

The primary sources of financing for budgetary support are the State Bank of Pakistan and scheduled banks. This fiscal year, the government has repaid a net Rs140.82 billion to the central bank.

Specifically, the Federal Government repaid Rs181.67 billion, while the Provincial Government borrowed Rs45.21 billion. The AJK Government repaid Rs4.13 billion, and the GB Government repaid Rs0.23 billion.

Conversely, scheduled banks provided a net loan of Rs145.33 billion, all of which was borrowed by the Federal Government, with no borrowing or repayment by the Provincial Government.

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