Rava is an online news portal providing recent news, editorials, opinions and advice on day to day happenings in Pakistan.
KARACHI: The government has borrowed Rs1.276 trillion from the State Bank of Pakistan (SBP) in less than two and half months (up to Sept 7) of this fiscal year compared to just Rs118bn in the corresponding period last year.
On Tuesday the central bank reported that during the first quarter of 2018-19, the government retired Rs1.202tr debt of commercial banks to keep them liquid to make financing available for the private sector.
Likewise, the private sector’s borrowing during this period surged to Rs4.1bn against a net retirement of Rs100bn in the same period last year, demonstrating increased economic activities despite qualms related to general elections and formation of the new government.
The State Bank also reported that borrowing by the public sector enterprises (PSEs) was incredibly high as compared to the same period of last year. The PSEs borrowed Rs49.6bn against a net retirement of Rs25bn in corresponding period of last fiscal. In FY18, the PSEs borrowed Rs245bn.