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KARACHI: The government has been borrowing heavily from banks, as evidenced by the latest State Bank of Pakistan (SBP) data, which showed that borrowing averaged about Rs500 billion per month in the outgoing fiscal year 2026.
Reliance on borrowings to run government affairs was more concerning when the data revealed that per day borrowing through banks was Rs16.4bn.
And this was only from banks; the corporate sector also invests in government papers, which accounts for about 25 per cent of the total investment in government papers.
Each year, the government borrows more than the previous year, reflecting its sizable spending. It has accumulated large liquidity through taxes and is diversifying its borrowing sources.
