KARACHI: The cash-strapped federal government borrowed some Rs 500 billion from scheduled banks for budgetary support during the first two weeks of this fiscal year (FY24).
According to the State Bank of Pakistan (SBP), the federal government’s borrowing for budgetary support rose by 218 per cent during the initial two weeks of this fiscal year to finance the fiscal deficit.
The federal government has borrowed Rs 499.46 billion from scheduled banks between July 1, 2023, to July 14, 2023, as against Rs 157.44 billion in the same period of the last fiscal year (FY22), depicting an increase of Rs 342 billion.
The detailed analysis revealed that the federal government had repaid a sufficient amount to the SBP instead of borrowing.