Government Eliminates a Massive Rs170.6 billion Debt Burden Within a Week

The Pakistani government successfully retired a substantial debt amounting to Rs170.58 billion in the week concluding on December 29, 2023. This action has contributed to the cumulative net borrowing for the ongoing fiscal year 2024, reaching Rs2.3 trillion, as per the weekly estimates released by the central bank.

The government's borrowings are categorized into three main segments based on the loan's purpose, namely budgetary support, commodity operations, and others.

Breaking down the figures for the week, the net retirement in the category of budgetary support was Rs205.06 billion, while commodity operations saw borrowings of Rs34.48 billion. Additionally, Rs34.48 billion was successfully retired in the "others" category during the same week.

Consequently, the total borrowing for the current fiscal year 2024 now stands at Rs2.53 trillion for budgetary support, with a net retirement of Rs229.15 billion for commodity operations, and Rs1.24 billion in borrowings for other purposes.

In the current fiscal year, the government has made a net repayment of Rs1.65 trillion to the central bank. This includes Rs1.38 trillion by the Federal Government, Rs251.6 billion by the Provincial Government, Rs13.28 billion by the AJK Government, and Rs4.59 billion by the GB Government.

Conversely, Scheduled Banks have disbursed a net total of Rs4.18 trillion. The Federal Government accounted for Rs4.28 trillion of this amount, while the Provincial Government retired Rs108.18 billion.