The federal government borrowed Rs 2.809 trillion from banks for budgetary support during the first nine months (July-March) of FY24, marking a 138% increase compared to the same period in FY23, according to the data shared by the State Bank of Pakistan.
Overall, the federal government raised Rs 4.842 trillion from scheduled banks during this period, compared to Rs 2.033 trillion in FY23.
In contrast, provincial governments demonstrated a healthier financial outlook, collectively repaying Rs 315.4 billion to the SBP during the review period.
The Balochistan government returned Rs 68.7 billion, Khyber Pakhtunkhwa repaid Rs 40.5 billion, Sindh returned Rs 41.8 billion, and Punjab made a repayment of Rs 164.22 billion to the SBP during the period under review.
Moreover, the AJK Government and Gilgit-Baltistan Government retired Rs 17.7 billion and Rs 1.1 billion, respectively, during the same period.
The federal government’s persistent fiscal deficit challenges over the past two years have necessitated increased domestic borrowing.
To address this, the government plans to borrow around Rs 5 trillion in the final quarter (April-June) of FY24 through the issuance of treasury bills and bonds.
This includes Rs 2.49 trillion from commercial banks through long-term security papers and Rs 2.475 trillion through the auction of Market Treasury Bills (MTBs).
It’s very tough these days hope so we recover