ISLAMABAD: Government borrowings from Banks in almost six months reached to new highs. It is because of the UIMF conditions that govt can not borrow from central bank (up to a certain limit) and would only borrow from commercial banks at market rates.
Govt borrowing reaches to Rs 3214 billion in July 1 to December 2023 versus Rs 1019 billion of the same period last year.
The government borrowing in six months crosses Rs 3000 billion whereas in last fiscal year borrowing was around Rs 3,639 billion.
Though, in fiscal year 2022 the borrowing stood around Rs 3324 billion.
Earlier when government was borrowed money from central bank, it cost it almost zero interest rate. Now by borrowing from commercial banks it has to incur almost 20% of the borrowed amount. This means around Rs 500 billion additional would be on the national exchequer on this amount of borrowing.
