Govt borrows Rs 10.33 trillion from banking sector

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Govt borrows Rs 10.33 trillion from banking sector

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Government has borrowed Rs 10.33 trillion from banking sector during first 9 months of current FY.

17 April,2012 06:40 pm

Federal Government is still relying on banking sector to meet its high fiscal deficit.The State Bank of Pakistan has revealed that borrowing for budgetary support by the federal government stands at Rs 25.82 billion per week.Also, the borrowing has reached Rs 337.32 billion during July1, 2011 to April 6, 2012.The net borrowing from commercial banks has crossed Rs 695.79 billion.Volume of federal government borrowing is up by 110 percent during current fiscal year as compared to last year’s figure.Rising borrowing trend from domestic sources reflects that the government is facing serious financial problems and still relying on banking system to meet its high fiscal deficit, bankers said.