Government's net budgetary borrowing from the banking system during July 1, 2005 and May 20, 2006 has declined to Rs 56.27 billion against FY 2005-06 target of Rs 98 billion, the State Bank of Pakistan (SBP) said on Thursday.
It is worth mentioning that during July 1 and March 4, 2006, it stood at Rs 155.59 billion, which was 58.76 percent higher than FY 2006 limit. But, after that, it sharply declined and stood at Rs 56.27 billion during the period under study. However, compared to same period last fiscal, it rose by Rs 28.08 billion (99.6 percent).
According to the break-up of the data, the central government's net borrowing rose to Rs 59.18 billion between July 1, 2005 and May 20, 2006, from Rs 35.24 billion, borrowed from SBP and commercial banks in corresponding period last year.
However, the provincial governments retired Rs 2.91 billion during the period under review against Rs 7.04 billion retired during the corresponding period last fiscal.
The data further reveal that the central government borrowed Rs 60.77 billion from SBP as against Rs 156.07 billion last year. While it retired Rs 1.59 billion of scheduled banks.
The bank further says that the provincial governments during the period borrowed Rs 332 million from the scheduled banks. During the same period last year they retired Rs 9.39 billion of scheduled banks. They retired Rs 3.24 billion of the central bank as compared to Rs 2.35 billion borrowed during the same period last fiscal.