Government borrowing reduced to Rs 155 billion: Kardar

State Bank of Pakistan Governor Shahid Kardar on Wednesday said the government borrowing for the current fiscal year has been reduced to Rs 155 billion. Talking to media after giving a briefing to the economic committees of Pakistan People's Party (PPP) and Pakistan Muslim League (Nawaz) on loan write-offs, he said that share of loans written off by the public sector banks stands at around 11 percent of the total share since 2003.
He said majority of about 48 percent loans were written off by foreign banks. In reply to questions, he said the SBP is trying to bring back the government borrowing from the central bank to the level of September 2010.
The total outstanding amount of the SBP against the government on September 2010 stood at Rs 1382 billion and would be reduced to zero in five year after the approval of the SBP Act by the Parliament. The SBP governor said to reduce the federal and provincial government borrowings from the central bank, the limit of overdraft facility was being strictly implemented. He said that two lists were presented to the economic committees with one covering period from 1971 to 2002 and the other from 2003 onwards about the loans written off by public and private sector banks.