Govt. borrowing drops to Rs.95 billion as of last week

[Shahzaz ud din]

Govt. borrowing drops to Rs.95 billion as of last week
By
News Desk
-
January 31, 2020

January 31, 2020 (MLN): The government of Pakistan has retired an additional sum of Rs.3.13 billion during the week ended January 24, 2020, which brings its total net retirement for ongoing fiscal year FY2020 to Rs.95.01 billion. As of prior week, the government had retired a net sum of Rs.91.87 billion.

According to the State Bank of Pakistan's weekly estimates in this regard, the government had borrowed Rs.701.26 billion net, around the same time last year.

The government sector borrowings are divided into three broad categories based on the purpose of loan which are budgetary support, commodity operations and others.

Split three ways between these broad categories, the cumulative net retirement off budgetary support was Rs.17.61 billion, while that off commodity operations stood at Rs.78.95 billion. On the contrary, a net total of Rs.1.55 billion were borrowed for other miscellaneous operations.

The two biggest source of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. This fiscal year, the central bank has been retired a net sum of Rs.766.61 billion by the government, out of which the Federal Government retired Rs.419.94 billion, the Provincial Government retired Rs.332.22 billion, AJK Government retired Rs.11.14 billion, and the GB Government retired Rs.3.31 billion.

On the other hand, the Scheduled Banks have lent out a net total of Rs.749 billion out of which the Federal Government borrowed Rs.765.78 billion while the Provincial Government retired Rs.16.78 billion.

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Posted on: 2020-01-31T18:10:00+05:00
32484

 

[GHALIB]

Govt. borrowing drops to Rs.95 billion as of last week
By
News Desk
-
January 31, 2020

January 31, 2020 (MLN): The government of Pakistan has retired an additional sum of Rs.3.13 billion during the week ended January 24, 2020, which brings its total net retirement for ongoing fiscal year FY2020 to Rs.95.01 billion. As of prior week, the government had retired a net sum of Rs.91.87 billion.

According to the State Bank of Pakistan's weekly estimates in this regard, the government had borrowed Rs.701.26 billion net, around the same time last year.

The government sector borrowings are divided into three broad categories based on the purpose of loan which are budgetary support, commodity operations and others.

Split three ways between these broad categories, the cumulative net retirement off budgetary support was Rs.17.61 billion, while that off commodity operations stood at Rs.78.95 billion. On the contrary, a net total of Rs.1.55 billion were borrowed for other miscellaneous operations.

The two biggest source of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. This fiscal year, the central bank has been retired a net sum of Rs.766.61 billion by the government, out of which the Federal Government retired Rs.419.94 billion, the Provincial Government retired Rs.332.22 billion, AJK Government retired Rs.11.14 billion, and the GB Government retired Rs.3.31 billion.

On the other hand, the Scheduled Banks have lent out a net total of Rs.749 billion out of which the Federal Government borrowed Rs.765.78 billion while the Provincial Government retired Rs.16.78 billion.

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Posted on: 2020-01-31T18:10:00+05:00
32484

very good .

 

[Cornered Tiger]

Govt. borrowing drops to Rs.95 billion as of last week
By
News Desk
-
January 31, 2020

January 31, 2020 (MLN): The government of Pakistan has retired an additional sum of Rs.3.13 billion during the week ended January 24, 2020, which brings its total net retirement for ongoing fiscal year FY2020 to Rs.95.01 billion. As of prior week, the government had retired a net sum of Rs.91.87 billion.

According to the State Bank of Pakistan's weekly estimates in this regard, the government had borrowed Rs.701.26 billion net, around the same time last year.

The government sector borrowings are divided into three broad categories based on the purpose of loan which are budgetary support, commodity operations and others.

Split three ways between these broad categories, the cumulative net retirement off budgetary support was Rs.17.61 billion, while that off commodity operations stood at Rs.78.95 billion. On the contrary, a net total of Rs.1.55 billion were borrowed for other miscellaneous operations.

The two biggest source of financing for budgetary support are the State Bank of Pakistan and the Scheduled Banks. This fiscal year, the central bank has been retired a net sum of Rs.766.61 billion by the government, out of which the Federal Government retired Rs.419.94 billion, the Provincial Government retired Rs.332.22 billion, AJK Government retired Rs.11.14 billion, and the GB Government retired Rs.3.31 billion.

On the other hand, the Scheduled Banks have lent out a net total of Rs.749 billion out of which the Federal Government borrowed Rs.765.78 billion while the Provincial Government retired Rs.16.78 billion.

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Posted on: 2020-01-31T18:10:00+05:00
32484

Good news. Please provide source as well. Thank you.

 

[volatile]

On the other hand, the Scheduled Banks have lent out a net total of Rs.749 billion out of which the Federal Government borrowed Rs.765.78 billion while the Provincial Government retired Rs.16.78 billion.

That sums it up ,if i m correct SBP is not lending any more and Govt is borrowing from Commercial banks

 

[The Accountant]

That sums it up ,if i m correct SBP is not lending any more and Govt is borrowing from Commercial banks

No you are incorrect.

Govt. retired Rs. 766 million of SBP loan and borrowed 749 from commercial bank so they retired net 17 billion of net loan from financial sectors. However, the article claimed that on the net basis total loan retirement is 95 billion it means there are some other lenders where government paid off 78 billion.

So in short we are facing a high heat of inflation but results are being delivered initially in the form of reduction in current account deficit and now but improvement in borrowing.

Now next focus should be and apparently is on improvement in business environment so that economic growth could pickup. reduction in interest rates and ease in getting multiple type of registrations is instrumental in this.

 

[Shahzaz ud din]

Private Sector borrowing increases by Rs.6 Billion
By
News Desk
-
January 31, 2020

January 31, 2020 (MLN): The non-government sector has borrowed another net sum of Rs.6.14 billion during the week ended January 24, 2020, which brings the cumulative net borrowing for ongoing fiscal year FY2020 to Rs.140.95 billion. The net borrowing as of prior week was recorded at Rs.134.81 billion.

According to weekly data released by the State Bank of Pakistan, the sector's borrowing has dropped by Rs.493.35 billion over the year since the borrowing as of corresponding period of last year was recorded at Rs.634.3 billion.

The non government sector is divided into three broad categories namely, the Private Sector, the Public Sector Enterprises and NBFI. Commercial banks are the main source of financing for the private sector, incuding conventional banks, islamic banks and islamic branches of conventional banks.

This fiscal year, the private sector borrowed a net sum of Rs.149.31 billion, whereas the PSE's have retired Rs.9.03 billion and NBFI has borrowed Rs.667.41 million.

As we disintegrate the inflows and outflows within the private sector, we see that Conventional Banks lent a cumulative sum of Rs.54.45 billion, Islamic Banks lent Rs.24.49 billion and lastly the Islamic branches of Conventional Banks lent Rs.70.38 billion.



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Posted on: 2020-01-31T18:15:00+05:00