Government borrows Rs 247bn from commercial banks

KARACHI: Government borrowing from commercial banks has unabatedly increased to Rs 247 billion during the period July 1 to September 24, 2011 in addition to accumulated amount of Rs 1.4 trillion.

The provincial figures of the State Bank of Pakistan (SBP) showed that government borrowing from commercial banks witnessed a significant growth in the past three months of the fiscal year despite it borrowed Rs 7.17 billion in the corresponding period of last year. Government borrowing has switched from central bank to commercial banks.

The federal government has made no borrowing from central bank but deposited Rs 33.31 billion in July to Sep 24 however its accumulated borrowing stood at Rs 1.2 trillion till June 2011.

The government so far has maintained the zero borrowing from the SBP during the period against Rs 220 billion borrowed during the same period last year.

The borrowing from the banking system stood at Rs 224.36 billion against Rs 2.237 billion, according to SBP weekly provisional data released Tuesday.

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