SBP data reveals govt borrowed Rs8.3 trillion from banks in FY24

The Pakistani government significantly increased its domestic borrowing in the fiscal year 2023-24, according to the latest data from the State Bank of Pakistan (SBP). This period saw the government borrowing Rs8.3 trillion from scheduled banks, a substantial rise from Rs3.6 trillion in FY23 and Rs3.3 trillion in FY22.

The Federal Government accounted for the bulk of this borrowing, taking Rs8.56 trillion, while the Provincial Government retired Rs261.27 billion. The two primary sources of budgetary support financing are the SBP and scheduled banks.

In FY24, the government repaid a net amount of Rs694.85 billion to the central bank, bringing the net borrowing figure to Rs7.49 trillion. Government sector borrowings are categorized into three main areas: budgetary support, commodity operations, and others.

For FY24, the net borrowing for budgetary support stood at Rs7.61 trillion. In contrast, there was a net retirement of Rs107.59 billion for commodity operations and Rs6.18 billion for other categories.

This notable increase in domestic debt highlights the government’s reliance on internal sources to manage its fiscal requirements amid challenging economic conditions.