AGL 40.00 Decreased By ▼ -0.01 (-0.02%)
AIRLINK 127.04 Decreased By ▼ -0.95 (-0.74%)
BOP 6.67 Increased By ▲ 0.07 (1.06%)
CNERGY 4.51 Decreased By ▼ -0.09 (-1.96%)
DCL 8.55 Increased By ▲ 0.07 (0.83%)
DFML 41.44 Decreased By ▼ -0.04 (-0.1%)
DGKC 86.85 Increased By ▲ 0.27 (0.31%)
FCCL 32.28 Increased By ▲ 0.14 (0.44%)
FFBL 64.80 Decreased By ▼ -0.62 (-0.95%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.57 Decreased By ▼ -0.92 (-0.83%)
HUMNL 14.68 Decreased By ▼ -0.07 (-0.47%)
KEL 5.05 Decreased By ▼ -0.08 (-1.56%)
KOSM 7.46 Increased By ▲ 0.34 (4.78%)
MLCF 41.38 Decreased By ▼ -0.27 (-0.65%)
NBP 60.41 Increased By ▲ 0.32 (0.53%)
OGDC 190.10 Decreased By ▼ -4.59 (-2.36%)
PAEL 27.83 Decreased By ▼ -0.12 (-0.43%)
PIBTL 7.83 Decreased By ▼ -0.17 (-2.13%)
PPL 150.06 Decreased By ▼ -1.11 (-0.73%)
PRL 26.88 No Change ▼ 0.00 (0%)
PTC 16.07 Increased By ▲ 0.07 (0.44%)
SEARL 86.00 Increased By ▲ 7.80 (9.97%)
TELE 7.71 Increased By ▲ 0.32 (4.33%)
TOMCL 35.41 Decreased By ▼ -0.26 (-0.73%)
TPLP 8.12 Increased By ▲ 0.21 (2.65%)
TREET 16.41 Increased By ▲ 0.52 (3.27%)
TRG 53.29 Increased By ▲ 0.53 (1%)
UNITY 26.16 Decreased By ▼ -0.39 (-1.47%)
WTL 1.26 Decreased By ▼ -0.01 (-0.79%)
BR100 9,884 Decreased By -36.4 (-0.37%)
BR30 30,600 Decreased By -151.5 (-0.49%)
KSE100 93,355 Increased By 130.9 (0.14%)
KSE30 28,931 Increased By 46 (0.16%)

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.