Achi news desk-
KARACHI (Web Desk) The government has broken all records by borrowing 650 billion rupees from banks in a week, and high inflation in the country is the result.
According to the data released by the State Bank of Pakistan, the government borrowed a record 55 trillion rupees from commercial banks during the current fiscal year between July 1 and April 5 to cover rising costs.
The central bank had reported on April 13 that the government borrowed Rs 48.42 billion from banks, showing that loans reached Rs 55 trillion after borrowing Rs 657 billion in a week.
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These huge loans are a burden on the economy, local debt has left nowhere to distribute revenue other than interest payments, and the government now has to pay more than half of the total budget in interest payments.
During the fiscal year 2023, the government had borrowed 37 trillion rupees from banks, and now the government has increased its loans by 17 trillion 84 billion rupees in the first 9 months, indicating a worrying situation.
The government usually borrows heavily from banks in the last quarter of the financial year to paint a better picture of economic performance.
