AGL 38.30 Increased By ▲ 0.08 (0.21%)
AIRLINK 133.25 Increased By ▲ 4.28 (3.32%)
BOP 8.85 Increased By ▲ 1.00 (12.74%)
CNERGY 4.68 Increased By ▲ 0.02 (0.43%)
DCL 8.64 Increased By ▲ 0.32 (3.85%)
DFML 39.70 Increased By ▲ 0.76 (1.95%)
DGKC 85.38 Increased By ▲ 3.44 (4.2%)
FCCL 34.84 Increased By ▲ 1.42 (4.25%)
FFBL 75.55 Decreased By ▼ -0.16 (-0.21%)
FFL 12.84 Increased By ▲ 0.02 (0.16%)
HUBC 109.80 Decreased By ▼ -0.56 (-0.51%)
HUMNL 14.14 Increased By ▲ 0.13 (0.93%)
KEL 5.40 Increased By ▲ 0.25 (4.85%)
KOSM 7.76 Increased By ▲ 0.09 (1.17%)
MLCF 41.20 Increased By ▲ 1.40 (3.52%)
NBP 70.05 Decreased By ▼ -2.27 (-3.14%)
OGDC 194.25 Increased By ▲ 5.96 (3.17%)
PAEL 26.20 Increased By ▲ 0.57 (2.22%)
PIBTL 7.39 Increased By ▲ 0.02 (0.27%)
PPL 163.85 Increased By ▲ 11.18 (7.32%)
PRL 26.39 Increased By ▲ 1.00 (3.94%)
PTC 19.47 Increased By ▲ 1.77 (10%)
SEARL 84.60 Increased By ▲ 2.18 (2.64%)
TELE 8.00 Increased By ▲ 0.41 (5.4%)
TOMCL 34.00 Increased By ▲ 1.43 (4.39%)
TPLP 8.73 Increased By ▲ 0.31 (3.68%)
TREET 17.15 Increased By ▲ 0.37 (2.21%)
TRG 60.70 Increased By ▲ 4.66 (8.32%)
UNITY 29.00 Increased By ▲ 0.22 (0.76%)
WTL 1.36 Increased By ▲ 0.01 (0.74%)
BR100 10,786 Increased By 127.6 (1.2%)
BR30 32,266 Increased By 934.6 (2.98%)
KSE100 100,083 Increased By 813.5 (0.82%)
KSE30 31,193 Increased By 160.9 (0.52%)

The federal government borrowing for budgetary support from scheduled banks posted an increase of Rs 192 billion during the current fiscal year owing to rising current expenditure, higher subsidies and slow foreign inflows. The State Bank of Pakistan on Tuesday revealed that federal government borrowed Rs 861.273 billion during July 1, 2012 to April 12, 2013, for budgetary support from scheduled banks compared with borrowing of Rs 668.773 billion in corresponding period of last fiscal year, depicting a healthy growth of 29 percent or Rs 192.500 billion.
"Shortfall in foreign inflows on the back of slow privatisation process, rising government expenditure and billions of rupees subsidies on commodities had compelled the federal government to go for it," economists said. "Less than target revenue collection and losses of Public Sector Enterprises (PSEs) are also chief reasons of high government borrowing," they added. When the country is facing shortfall in revenue and witnessing slow foreign inflows, there is only one solution and that is borrow from domestic resources, they added.
However, the government borrowing from the State Bank has witnessed a massive decline of 70 percent to Rs 97.687 billion during the current fiscal year down from Rs 328.876 billion in the same period of last fiscal year. Cumulatively, the federal governments has borrowed some Rs 952 from banking system (including SBP and scheduled banks) during July 1, 2012 to April 12, 2013 compared to Rs 1 trillion in the corresponding period of last fiscal year, depicting a decline of 5.5 percent.

Copyright Business Recorder, 2013

Comments

Comments are closed.