Govt borrows record Rs5.7tr at high rates

The government borrowed a record amount from banks at record high prices, which ate up 76 per cent of the tax revenue during the first nine months of the current fiscal year. The latest data released by the State Bank on Tuesday reveals that the present government has been borrowing heavily from banks despite the fact the cost of money is at its peak. The SBP reported that the government borrowed Rs5.736 trillion during July-April FY24 while it paid Rs5.517trn as markup on borrowing during July-March FY24. It shows the gravity of the situation. Borrowing made during the current fiscal year was not entirely borrowed by the present government, but by the previous caretaker government as well. The latter is equally responsible for this massive borrowing.