Govt borrowing update: Pakistan’s debt surges by Rs161.9 billion

WEB DESK: Pakistan’s financial landscape witnessed a surge in government borrowing as it acquired an additional debt of Rs161.9 billion in the week concluding on March 8, 2024.

This escalation pushes the total net borrowing for the ongoing fiscal year 2024 to a staggering Rs3.22 trillion, as per the latest estimates released by the central bank.

Comparatively, the preceding week saw government borrowings amounting to Rs366 billion, indicating a substantial rise in financial obligations within a short span.

The government’s borrowing activities are segmented into three primary categories, delineated by the purpose of the loans: budgetary support, commodity operations, and others.

In the recent week, the net borrowing for budgetary support tallied at Rs167.81 billion, while Rs5.69 billion was allocated towards the retirement of commodity operations. Additionally, Rs222.39 million was utilised for other purposes during the same period.

Consequently, these figures culminate in cumulative borrowings for the fiscal year 2024, amounting to Rs3.54 trillion earmarked for budgetary support, Rs316.04 billion for the retirement of commodity operations, and Rs0.57 billion for miscellaneous endeavors.

Predominantly, the State Bank of Pakistan and the Scheduled Banks emerge as the primary financiers for budgetary support. Notably, the government has repaid a net sum of Rs489.33 billion to the central bank this fiscal year.

Within this spectrum, the Federal Government accounted for Rs308.96 billion of repayments, while the Provincial Government, AJK Government, and G-B Government contributed Rs157.64 billion, Rs16.28 billion, and Rs6.46 billion respectively.

Conversely, the Scheduled Banks extended a net total of Rs4.03 trillion in loans, with the Federal Government constituting the bulk of borrowers at Rs4.2 trillion.

Concurrently, the Provincial Government retired Rs175.84 billion in loans during the same period, highlighting a complex interplay of financial transactions between the government and banking institutions.