Government retires PkR 72 bn borrowing – Alfalah Securities Limited
Karachi, August 06, 2012 (PPI-OT): The federal govt. has retired over PkR 56.31 bn to State Bank of Pakistan (SBP) during the first three weeks of FY13 as compared to a retirement of PkR 44 bn in the same period of the last fiscal year.
According to Alfalah Securities Limited, the federal govt. has borrowed PkR 73.5 bn from scheduled banks during the first three week of the current fiscal year compared with a borrowing of PkR 28.645 bn in corresponding period of the last fiscal year showing an increase of 166%. Likewise, provincial govt. has repaid an amount of PkR 15.58 bn during July 1 to July 20, 2012 as against borrowing of PkR 46 bn last fiscal year. Cumulatively, retirement of budgetary borrowing by the federal and provincial governments from banking system (banks and the SBP) surged to PkR 72 bn in initial three weeks of current fiscal year as compared to PkR 922 mn in first three weeks of FY12. It seems to be encouraging for economic prosperity that the government has shown serious intent to repay the hefty borrowing from the banking system.