During the first two weeks of this fiscal year (FY24), the cash-strapped federal government borrowed almost Rs500 billion from scheduled banks for budgetary support.
The State Bank of Pakistan (SBP) reports that in the first two weeks of this fiscal year, the federal government’s borrowing for budgetary assistance increased by 218 percent in order to fund the fiscal deficit.
In comparison to the same time in the previous fiscal year (FY22), the federal government borrowed Rs499.46 billion from scheduled banks between July 1, 2023, and July 14, 2023, an increase of Rs342 billion.
According to the thorough research, the federal government has adequately returned the SBP rather than borrowing money.
The SBP has received 750 billion rupees in retirement from the federal government in the first two weeks of this fiscal year. The sum that was retired is over 190 percent more than the prior repayment during the same time of the previous fiscal year, which totaled Rs258 billion.
Balochistan’s government returned Rs1.339 billion to SBP during the review period, Khyber Pakhtunkhwa Rs2 billion, and Sindh’s government Rs8.16 billion. To cover its expenses, the Punjab government borrowed Rs39.4 billion from SBP.