Pakistan’s fiscal borrowings surge by Rs387.54 billion

WEB DESK: Pakistan has recently augmented its debt burden, acquiring an additional Rs387.54 billion during the week concluding on May 3rd, 2024.

This influx elevates the total net borrowing for the ongoing fiscal year 2024 to a staggering Rs5.17 trillion, as per the latest weekly estimates furnished by the central bank.

Notably, government borrowings for the current fiscal year have consistently surpassed previous years’ figures, indicating a pronounced reliance on borrowing to meet financial obligations.

These government sector borrowings are categorized into three principal segments based on the purpose of the loan: budgetary support, commodity operations, and others.

During the specified week, the weekly net borrowing for budgetary support amounted to Rs356.9 billion, while borrowing for commodity operations reached Rs30.91 billion.

Simultaneously, a total of Rs274.03 million was retired from the “others” category during the same period.

Consequently, the cumulative borrowing for the ongoing fiscal year 2024 now stands at Rs5.42 trillion for budgetary support, with Rs252.66 billion retired from Commodity Operations and Rs2.91 billion from other categories.

Of significant note, the State Bank of Pakistan and the Scheduled Banks emerge as the primary sources of financing for budgetary support, underlining their pivotal role in sustaining government operations amidst fiscal challenges.

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