Caretakers make record borrowing from banks

The caretaker government of Prime Minister Anwaarul Haq Kakar has made a record borrowing of almost Rs4 trillion from banks so far. The economy, already crushed under a huge debt burden, may witness an unprecedented increase in borrowings at the end of 2023-24 on June 30 as the amount has already surpassed the total borrowed in the entire FY23. The State Bank of Pakistan’s data showed that the government borrowed Rs3.99tr from July 1 to Jan 19, 2023-24 against Rs1.398tr in the same period last year, reflecting an increase of 185 per cent. This may be strange for many, as the government has been collecting revenues beyond the target set for six months. Despite higher liquidity, the government has been borrowing desperately to meet increasing expenses.