Pakistan retires Rs84.34 billion debt, total borrowing reaches Rs2.34 trillion

WEB DESK: In a significant financial move, the government of Pakistan successfully retired a debt of Rs84.34 billion during the week ending January 26, 2024.

This development has brought the total net borrowing for the ongoing fiscal year 2024 to Rs2.34 trillion, as per the central bank’s weekly estimates.

The government’s borrowings are categorised into three broad segments based on the purpose of the loan, namely budgetary support, commodity operations, and others.

Breaking down the figures, the weekly net retirement off budgetary support was Rs30.68 billion, while the retirement off commodity operations reached Rs53.24 billion. Additionally, Rs422.79 million was retired off others during the week.

These latest transactions contribute to the cumulative borrowing for the current fiscal year 2024, standing at Rs2.6 trillion for budgetary support, Rs262.4 billion for the retirement off commodity operations, and Rs0.73 billion borrowing for other purposes.

The major sources of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. Notably, during this fiscal year, the government has repaid a net sum of Rs1.44 trillion to the central bank.

Of this amount, the Federal Government retired Rs1.21 trillion, while the Provincial Government contributed Rs219.36 billion. The AJK Government retired Rs10.47 billion, and the GB Government borrowed Rs1.19 billion.

In parallel, the Scheduled Banks played a crucial role in financing, lending out a net total of Rs4.04 trillion. Within this, the Federal Government borrowed Rs4.13 trillion, and the Provincial Government retired Rs90.41 billion.

This financial maneuvering reflects the government’s ongoing efforts to manage its fiscal responsibilities and address the economic challenges, demonstrating a strategic approach towards debt management and financial sustainability.

The detailed breakdown of borrowings and repayments underscores the government’s commitment to maintaining a transparent and accountable financial system.

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