Govts domestic borrowing soars in FY24. Throughout the Fiscal year 2023-2024, the Pakistani Government drastically increased its domestic borrowing.
The State Bank of Pakistan (SBP) has just released information showing that during this time, the Government borrowed Rs 8.3 trillion from banks. Compared to Rs. 3.3 trillion in FY22 and Rs 3.6 trillion in FY23, this is an enormous increase.
With Rs 8.56 trillion borrowed, the Federal Government was the biggest borrower, followed by the provincial Government, which repaid Rs 261.27 billion. The SBP and scheduled banks were the main providers of this borrowing.
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The Government paid back Rs 694.85 billion to the central bank in FY24, reaching Rs. 7.49 trillion in net borrowing. The main goals of this borrowing were other requirements, commodity operations, and fiscal support.
The net borrowing for budgetary support in FY24 was Rs 7.61 trillion. For product activities, there was a net payback of Rs 107.59 billion; for other categories, it was Rs 6.18 billion.
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The Government heavily depends on its assets to cover its financial needs during difficult economic times, as demonstrated by the rise in domestic debt.
