The first two months of fiscal year 2025 (FY25) have seen a sharp 58% decrease in the federal government’s borrowing from scheduled banks for budgetary support.
The State Bank of Pakistan (SBP) released statistics showing that during July 1 and August 30, 2024, the government borrowed Rs660.3 billion from scheduled banks, as opposed to Rs1.584 trillion in FY24. This signifies a significant reduction of Rs924.3 billion.
The State Bank of Pakistan (SBP) received a substantial reduction in repayments from the federal government in the first two months of fiscal year 2025—Rs 176.6 billion as opposed to Rs 714 billion in the same time in FY24.
The government’s overall net borrowings during this review period, which includes budgetary support and commodities finance, decreased by 27%.
