Govt decreases borrowing from SBP

LAHORE: Government's borrowing from State Bank of Pakistan (SBP) was lower at the end of the third quarter of the current fiscal year compared to last year, reported a private news outlet.

During the period the government borrowed Rs620 billion from the central bank compared to Rs739 billion in the same period of last year. A report released by SBP pointed out that the government during this period has borrowed solely from the central bank while sparing the scheduled banks. The federal government during the period under review also retired debt amounting to Rs418 billion belonging to the scheduled banks.

The banking system as a whole experienced a growth of around Rs415 billion in terms of net foreign assets compared to negative growth of Rs258 billion in the same period of last fiscal year.

Moreover, the report revealed a Rs18 billion increase in private borrowing with the central bank's interest rate remaining unchanged at six per cent. However, the interest rate is expected to increase amid rupees recent devaluation against the dollar.