Fom September 6 to September 13, the government’s borrowings increased by Rs443.5 billion to Rs899 billion. The amount obtained (Rs455.8bn) is almost equal to the initial amount borrowed the week before, from July 1 to September 6.
The State Bank’s report goes to show that the government borrowed heavily during the week and added almost 99% of the previous amount in its debts.
The aggressive borrowing began mid July when the State Bank completed its cycle of monetary tightening and raised the key discount rate by 1%.
This year the borrowing situation has changed in comparison with last year due to the IMF agreement. The government has been borrowing from scheduled banks and retiring SBP debts since the start of the current fiscal year.