During the initial nine months of the ongoing fiscal year, the government has taken out a historic amount of loans from banks, accounting for a substantial 76 percent of the tax revenue.
Recent data released by the State Bank highlights the government’s significant borrowing spree, despite the prevailing high cost of funds.
According to the SBP report issued on Tuesday, the government borrowed a staggering Rs5.736 trillion between July and April of FY24, while also disbursing Rs5.517 trillion in markup on these borrowings during the July-March period of FY24.
This data underscores the severity of the situation. Notably, the borrowing undertaken in the current fiscal year does not solely pertain to the present government; the previous caretaker government shares equal responsibility for this extensive borrowing.
