Karachi: Government has retired Rs 149 billion to central bank as outstanding stock of these borrowings (on cash basis) has come down to Rs 1.051 trillion as on 30th September 2011, the State Bank of Pakistan revealed on Saturday in the policy rate announcement.
The accumulated stock of Rs1.051 trillion is considerably lower than the mutually agreed limit of Rs 1155 billion for FY12 and is expected to have a beneficial impact on inflation outlook if the trend continues.
The government has maintained zero borrowing from the SBP in July to September.
The retirement of SBP loans caused after the government has shifted its borrowing to the commercial banks. The government borrowing from commercial banks has grew to Rs 247 billion recently 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.
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.
The government would continue borrowing from banking system to support fiscal operations.
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