During July-March FY 2025, the Government sector borrowing for budgetary support decreased to Rs. 1,320 billion compared to Rs. 4,219.5 billion during the same period last year.
According to the Economic Survey 2024-25, the government retired Rs. 287.4 billion to SBP against a retirement of Rs. 654.7 billion last year. Similarly, the government borrowed Rs. 1,608 billion from scheduled banks, significantly less than Rs. 4,874 billion in the same period last year.
Net government sector borrowing decreased from Rs. 3,855.9 billion in July-March FY 2024 to Rs. 1,018.9 billion in FY 2025.
During the period under review, low government borrowing reflects fiscal consolidation as the fiscal deficit remained 2.4 percent of GDP during July-March FY 2025 compared to 3.7 percent in the same period last year.
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