The federal government’s borrowing from scheduled banks for budgetary support decreased by 58% in the first two months of fiscal year 2025 (FY25), according to data released by the State Bank of Pakistan (SBP).
The SBP reported that the federal government borrowed Rs 660.3 billion from scheduled banks between July 1 and August 30, 2024, a sharp decline from the Rs 1.584 trillion borrowed during the same period last year. This represents a reduction of Rs 924.3 billion.
At the same time, the government repaid Rs 176.6 billion to the SBP during the first two months of this fiscal year, compared to Rs 714 billion in the corresponding period of FY24.
Overall, net government sector borrowing, which includes budgetary support and commodity financing, saw a 27% decrease, amounting to Rs 248.153 billion.Â
In total, the federal and provincial governments borrowed Rs 681 billion for various purposes, down from Rs 929 billion in the same period last year.
Among provincial governments, Balochistan repaid Rs 23.4 billion and Khyber Pakhtunkhwa returned Rs 30 billion to the SBP, while Sindh borrowed Rs 5 billion and Punjab took out Rs 294 billion in loans during the period.
In related news, the SBP has announced auction calendars for the sale of government securities to raise Rs 6.295 trillion in the next three months.Â
This includes Rs 3.475 trillion from the sale of short-term Market Treasury Bills (MTBs) and Rs 2.820 trillion from the sale of long-term Pakistan Investment Bonds (PIBs).
