Govt’s debt rises to Rs5.53 trillion with recent Rs35.4 billion borrowing

The government of Pakistan has secured an additional debt of Rs35.4 billion during the week ending on May 24, 2024, bringing the total net borrowing for the ongoing fiscal year 2024 to Rs5.53 trillion, according to the latest estimates from the central bank.

Government borrowings this fiscal year have consistently outpaced those of previous years, indicating a persistent reliance on external financing. The borrowing is classified into three primary categories: budgetary support, commodity operations, and other purposes.

For the week in question, net borrowing for budgetary support amounted to Rs24.52 billion, while loans for commodity operations totaled Rs13.07 billion. Conversely, a net amount of Rs2.19 billion was repaid under the “others” category.

Cumulatively, for fiscal year 2024, borrowings for budgetary support have reached Rs5.68 trillion. In contrast, there has been a retirement of Rs149.47 billion in loans for commodity operations and Rs5.48 billion for other categories.

The 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 total of Rs1.07 trillion to the central bank. This repayment includes Rs598.84 billion by the Federal Government, Rs423.28 billion by the Provincial Government, Rs38.19 billion by the AJK Government, and Rs5.16 billion by the GB Government.

On the other hand, scheduled banks have lent a net total of Rs6.75 trillion. The Federal Government borrowed Rs6.9 trillion from these banks, while the Provincial Government retired Rs151.49 billion.

This pattern of borrowing underscores the government’s heavy dependence on domestic financial institutions to meet its budgetary needs amidst ongoing economic challenges.