Govt. continues to borrow heavily from the SBP

Karachi: (Saturday, July 21, 2012) One of the reasons as to why there seems no end to inflation in Pakistan is thefederal government’s heavy borrowing from the central bank of the country. According to the sources at State Bank
of Pakistan (SBP), in last six days alone, the government has borrowed about Rs51 billion from the bank.

These information have prevailed as the SBP has published new statistics of borrowings of the government. According to these stats, on a rough estimate, the government is borrowing Rs 8.5 billion daily from the bank.

As per the details, out of this total borrowed money, Rs 44.72 billion were borrowed to overcome budget deficit. The provincial governments had borrowed Rs 3.54 billion, while Rs 6.39 billions were borrowed for commodities purchase.

In the fiscal year ending on June 30, the government’s total borrowing from the central bank had reached Rs 1200 billion.

Short URL: https://www.newspakistan.pk/?p=29417

Posted by Fayyaz Yaseen on Jul 21 2012. Filed under Business, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry