AGL 39.58 Decreased By ▼ -0.42 (-1.05%)
AIRLINK 131.22 Increased By ▲ 2.16 (1.67%)
BOP 6.81 Increased By ▲ 0.06 (0.89%)
CNERGY 4.71 Increased By ▲ 0.22 (4.9%)
DCL 8.44 Decreased By ▼ -0.11 (-1.29%)
DFML 41.47 Increased By ▲ 0.65 (1.59%)
DGKC 82.09 Increased By ▲ 1.13 (1.4%)
FCCL 33.10 Increased By ▲ 0.33 (1.01%)
FFBL 72.87 Decreased By ▼ -1.56 (-2.1%)
FFL 12.26 Increased By ▲ 0.52 (4.43%)
HUBC 110.74 Increased By ▲ 1.16 (1.06%)
HUMNL 14.51 Increased By ▲ 0.76 (5.53%)
KEL 5.19 Decreased By ▼ -0.12 (-2.26%)
KOSM 7.61 Decreased By ▼ -0.11 (-1.42%)
MLCF 38.90 Increased By ▲ 0.30 (0.78%)
NBP 64.01 Increased By ▲ 0.50 (0.79%)
OGDC 192.82 Decreased By ▼ -1.87 (-0.96%)
PAEL 25.68 Decreased By ▼ -0.03 (-0.12%)
PIBTL 7.34 Decreased By ▼ -0.05 (-0.68%)
PPL 154.07 Decreased By ▼ -1.38 (-0.89%)
PRL 25.83 Increased By ▲ 0.04 (0.16%)
PTC 17.81 Increased By ▲ 0.31 (1.77%)
SEARL 82.30 Increased By ▲ 3.65 (4.64%)
TELE 7.76 Decreased By ▼ -0.10 (-1.27%)
TOMCL 33.46 Decreased By ▼ -0.27 (-0.8%)
TPLP 8.49 Increased By ▲ 0.09 (1.07%)
TREET 16.62 Increased By ▲ 0.35 (2.15%)
TRG 57.40 Decreased By ▼ -0.82 (-1.41%)
UNITY 27.51 Increased By ▲ 0.02 (0.07%)
WTL 1.37 Decreased By ▼ -0.02 (-1.44%)
BR100 10,504 No Change 0 (0%)
BR30 31,226 No Change 0 (0%)
KSE100 98,049 Decreased By -30.4 (-0.03%)
KSE30 30,536 Decreased By -22.7 (-0.07%)

The government is more relying on the banking sector borrowing for budgetary support due to below the target revenue collection during the first quarter of current fiscal, besides slow privatisation process.
The central bank statistics depicted that between July and October 6, 2007 the net government sector borrowing for budgetary support has gone up by 83 percent due to the huge borrowing from the scheduled banks as well as the central bank.
After the current upsurge, the government sector borrowing from banking system has touched Rs 99.528 billion mark from July to October 6, as against Rs 54.448 billion in the corresponding period last year, depicting an increase of Rs 45.080 billion.
Major upsurge has been witnessed in the borrowing from scheduled banks, which has reached Rs 89.085 billion during this period as previously it stood at the negative position of Rs 43.219 billion in the same period last year.
The government sector budgetary borrowing from the central bank shows a large decline of 77 percent during July to October 6 ended week, as the central bank has already asked the government to minimise their borrowing from the central bank.
The government has borrowed some Rs 20.483 billion from the central bank as compared to Rs 90.288 billion during the same period last year, registering a decrease of Rs 69.805 billion.
"Below the target revenue collection and no new privatisation deal, besides no new foreign debt, has compelled the government to borrow more for budgetary support from local banking system," said Muzamil Aslam, an analyst.
Aslam said that borrowing from scheduled banks as compared to the central bank borrowing depicts that the central bank is passing the borrowing to the scheduled banks by selling more treasury bills.
"Second issuance of Pakistan Investment Bonds (PIBs) during the last 15 days also reflects that the government is more relying on the local banking system's borrowing," he added.
The central bank in its monetary policy has asked the federal government to minimise their borrowing from the central bank, he said, adding that if the government receives any big payment from foreign source then local banking borrowing would decline in future.
Similarly, as per latest statistics Broad Money (M2) has registered a growth of 1.53 percent to Rs 62.353 during July to October 6 ended week of the current fiscal year as compared to 0.50 percent to Rs 17.158 billion during the same period last year.

Copyright Business Recorder, 2007

Comments

Comments are closed.