The government has Rs.14.21 billion in borrowing during the week ended on September 11, of the current fiscal year which brings its total net retirement for the current financial year FY2021 to Rs.126.59 billion. Similarly, it was reported that during the previous week, the government of Pakistan had retired a net sum of Rs.140.8 billion.
In this regard, according to the State Bank of Pakistan’s weekly estimates, the government had borrowed Rs.145.1 billion net, around the same time last year. Mainly the government sector borrowings are divided into three broad categories based on the purpose of the loan which are budgetary support, commodity operations as well as others.
Split three ways between these broad categories, the cumulative net retirement off budgetary support was Rs.74.66 billion, that for commodity operations stood at Rs.51.59 billion. whereas Rs.337.93 million (net) were retired off other miscellaneous operations.
The two biggest sources of financing for budgetary support is the State Bank of Pakistan and the Scheduled Banks. This fiscal year, the central bank has been retired a net sum of Rs.280.14 billion by the government, out of which the Federal Government retired Rs.276.77 billion, the Provincial Government borrowed Rs.12.44 billion, AJK Government retired Rs.9.04 billion, and the GB Government retired Rs.6.77 billion. Similarly, the Scheduled Banks have given a net total of Rs.205.48 billion out of which the PTI led Federal Government borrowed Rs.192.33 billion, and the Provincial Government borrowed Rs.13.15 billion.