AIRLINK 69.92 Increased By ▲ 4.72 (7.24%)
BOP 5.46 Decreased By ▼ -0.11 (-1.97%)
CNERGY 4.50 Decreased By ▼ -0.06 (-1.32%)
DFML 25.71 Increased By ▲ 1.19 (4.85%)
DGKC 69.85 Decreased By ▼ -0.11 (-0.16%)
FCCL 20.02 Decreased By ▼ -0.28 (-1.38%)
FFBL 30.69 Increased By ▲ 1.58 (5.43%)
FFL 9.75 Decreased By ▼ -0.08 (-0.81%)
GGL 10.12 Increased By ▲ 0.11 (1.1%)
HBL 114.90 Increased By ▲ 0.65 (0.57%)
HUBC 132.10 Increased By ▲ 3.00 (2.32%)
HUMNL 6.73 Increased By ▲ 0.02 (0.3%)
KEL 4.44 No Change ▼ 0.00 (0%)
KOSM 4.93 Increased By ▲ 0.04 (0.82%)
MLCF 36.45 Decreased By ▼ -0.55 (-1.49%)
OGDC 133.90 Increased By ▲ 1.60 (1.21%)
PAEL 22.50 Decreased By ▼ -0.04 (-0.18%)
PIAA 25.39 Decreased By ▼ -0.50 (-1.93%)
PIBTL 6.61 Increased By ▲ 0.01 (0.15%)
PPL 113.20 Increased By ▲ 0.35 (0.31%)
PRL 30.12 Increased By ▲ 0.71 (2.41%)
PTC 14.70 Decreased By ▼ -0.54 (-3.54%)
SEARL 57.55 Increased By ▲ 0.52 (0.91%)
SNGP 66.60 Increased By ▲ 0.15 (0.23%)
SSGC 10.99 Increased By ▲ 0.01 (0.09%)
TELE 8.77 Decreased By ▼ -0.03 (-0.34%)
TPLP 11.51 Decreased By ▼ -0.19 (-1.62%)
TRG 68.61 Decreased By ▼ -0.01 (-0.01%)
UNITY 23.47 Increased By ▲ 0.07 (0.3%)
WTL 1.34 Decreased By ▼ -0.04 (-2.9%)
BR100 7,394 Increased By 99.2 (1.36%)
BR30 24,121 Increased By 266.7 (1.12%)
KSE100 70,910 Increased By 619.8 (0.88%)
KSE30 23,377 Increased By 205.6 (0.89%)
Print Print 2023-07-26

Budgetary support: Govt borrows Rs500bn from banks in 2 weeks: SBP

  • Says federal government's borrowing for budgetary support rose by 218 percent during the initial two weeks of this fiscal year
Published July 26, 2023

KARACHI: The cash-strapped federal government borrowed some Rs 500 billion from scheduled banks for budgetary support during the first two weeks of this fiscal year (FY24).

According to the State Bank of Pakistan (SBP), the federal government’s borrowing for budgetary support rose by 218 percent during the initial two weeks of this fiscal year to finance the fiscal deficit.

The federal government has borrowed Rs 499.46 billion from scheduled banks between July 1, 2023 to July 14, 2023 as against Rs 157.44 billion in the same period of last fiscal year (FY22), an increase of Rs 342 billion.

The detailed analysis revealed that the federal government instead of borrowing has repaid a sufficient amount to the SBP.

Q1FY24: Cash-strapped govt to borrow record Rs11trn

The federal government has retired Rs 750 billion to the SBP during the first two weeks of this fiscal year. The retired amount is some 190 percent higher than the previous amount of Rs 258 billion repaid during the same period of last fiscal year.

During the period under review, Balochistan government returned Rs 1.339 billion to SBP, Khyber Pakhtunkhwa Rs 2 billion, Sindh government repaid Rs 8.16 billion to the SBP. The Punjab government borrowed Rs 39.4 billion from SBP to meet its financial needs.

Analysts said the rising fiscal deficit has compelled the federal government to borrow more from the domestic banking system. Overall, the federal government has planned to borrow over Rs 11 trillion in the first quarter (Jul-Sept) of FY24 from domestic resources to meet its financial requirements.

The federal government will borrow this amount through the auction for security papers including GoP Ijara Sukuk Fixed Rental Rate (FRR), Pakistan Investment Bonds (PIBs) Fixed Rate, PIBs Floating Rate and Government of Pakistan Market Treasury Bills (MTBs).

Some 78 percent of financing requirements will be made through sale of short-term government papers. The federal government intended to raise some Rs 8.7 trillion through the auction for MTBs during July-Sept of 2023 against the maturing amount of Rs 8.711 trillion.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Maqbool Jul 26, 2023 10:36am
Funds are required for sitting Elected representatives “projects”and many new car for punjabs expanding Goernement servants and extra salaries And bonus’s to those only working in Punjab, so while other Provinces returned money , Punjab took an additional loan of over 39 billion . “ During the period under review, Balochistan government returned Rs 1.339 billion to SBP, Khyber Pakhtunkhwa Rs 2 billion, Sindh government repaid Rs 8.16 billion to the SBP. The Punjab government borrowed Rs 39.4 billion from SBP to meet its financial needs.“
thumb_up Recommended (0)
Tulukan Mairandi Jul 26, 2023 02:14pm
Govt borrowing from banks dries up capital for loans to businesses, needed for expansion. The broke Government prints money to repay the banks. Consequently PKR falls, despite whatever loan or bailout. The banks will collapse soon. Withdraw your money, convert it to CNY or whatever. And flee.
thumb_up Recommended (0)
Hilarious Jul 27, 2023 04:46pm
Don’t forget, this is peoples deposits being lended out, the govt goes down, the banks go down, the banks go down, the people go down. The people have been systematically put into this messy web of lies, corruption and deceit. A Lebanon 2.0 in the making, who says we don’t learn from other countries, we learn, just not from those that are worth learning from.
thumb_up Recommended (0)
Emmanuel Jul 29, 2023 04:47am
Good morning you doing today I want and of course
thumb_up Recommended (0)