The GOP (Government of Pakistan) borrowed Rs. 1.8 trillion (last: Rs1.79 trillion) from the banking sector in the July – April FY21 period. This increase is up by 1.8%.
This borrowing has been due to the repayment of previous loans, lower than expected revenue growth and the expenses in fighting COVID.
The GOP made a sizable retirement of debt to the tune of Rs. 1.51 trillion to the SBP as of 9th April, (last: Rs. 627 billion).
It was reported that the GOP aims to raise Rs. 4.7 trillion through borrowing from market treasury bills and Rs. 825 billion from Pakistan Investment Bonds in the April-June 2021 period to meet its funding requirements.
The budget deficit increased to Rs. 1.4 trillion in the July-December period which is 2.5% of GDP . The World Bank expects the budget deficit to remain at 8.3% of GDP this Fiscal Year.
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