Govt acquires additional Rs374.57 billion debt in one week

ISLAMABAD: The government of Pakistan has incurred an additional debt of Rs374.57 billion during the week ending June 14, 2024, bringing its total net borrowing for the ongoing fiscal year 2024 to Rs6.61 trillion, according to the latest estimates released by the central bank.

Throughout the current fiscal year, government borrowings have consistently surpassed those of previous years. The borrowing is categorized into three main purposes: budgetary support, commodity operations, and others.

For the week ending June 14, net borrowing for budgetary support amounted to Rs370.08 billion, while Rs4.81 billion was borrowed for commodity operations. Conversely, Rs324.33 million was retired from other categories during this period.

As a result, the cumulative borrowing for the fiscal year 2024 now stands at Rs6.73 trillion for budgetary support, Rs117.39 billion for the retirement of commodity operations debt, and Rs5.82 billion for the retirement of other debts.

The two principal sources of financing for budgetary support are the State Bank of Pakistan and Scheduled Banks. This fiscal year, the government has repaid a net sum of Rs770.83 billion to the central bank.

Of this, the Federal Government retired Rs609.69 billion, the Provincial Government retired Rs124.24 billion, the AJK Government retired Rs32.27 billion, and the GB Government retired Rs4.63 billion.

Read next: PSX rebounds, closes in green with 335-point gain