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KARACHI: The government borrowed over Rs4.9 trillion from banks by June 12, compared with Rs3.7 trillion in the corresponding period last year, reflecting increased spending despite the massive growth in tax revenues over the past three years.
The State Bank of Pakistan (SBP) reported on Monday that the government’s bank borrowings for the period from July 1 to June 12 in FY26 reached Rs4.918tr, which is much higher than last year’s, with 18 days still left to borrow more.
Financial experts believe total borrowing in FY26 may exceed last year’s borrowing of Rs5.434tr by the end of FY25. It seems odd that government borrowing has been rising even as revenues have grown strongly each year.
During the last three years from FY24 to FY26 (up to June 12), the government has borrowed a cumulative Rs18.86tr from banks, which is more than the total federal budget outlay for FY27.
