Govt Borrowing From Banks Up 7 Times Than Last Year

The government has borrowed Rs. 3.58 trillion just from banks during the first five months (July-November) of 2023-24 (FY24). As per official data from the State Bank of Pakistan (SBP), the government has borrowed over Rs. 3.58 trillion from the local banking sector during the first 5 months of FY24, seven times more than the Rs. 516 billion borrowed during the same period last year. The borrowing from scheduled banks in the current fiscal year is already near to the Rs. 3.7 trillion debt raised in the entire FY23. Overall, net government sector borrowing for budgetary support totaled Rs. 3.1 trillion in 5MFY24 against Rs. 1.17 trillion in SPLY. The net borrowing of the federal government to meet its financial requirements for running state affairs stood at Rs. 2.83 trillion in July-November FY24.