BusinessFINANCE MINISTRY SIMPLIFIES:  NO FRESH BORROWINGS FROM SBP

FINANCE MINISTRY SIMPLIFIES:  NO FRESH BORROWINGS FROM SBP

ISLAMABAD: The Service of Fund here on Thursday clarified that there had been no new borrowings by the government from the State Bank of Pakistan (SBP).

“In fact the government has been retiring its previous stock of debt with the SBP on its maturity,” the ministry said in an explanation whereas reacting to news circulating on social media whereby an impression was being made that government had borrowed from the central bank.

The articulation named it terribly off base which delineated the constrained understanding of the financial factors.

It said, as detailed within the money related tables (M2), the government’s borrowing from the SBP for budgetary purposes was calculated as the distinction between the government’s stock of borrowing from the SBP and its stores with the central bank.

Subsequently, net borrowing number may alter due to change in cash adjust with SBP and other bookkeeping traditions, it said including this alter was not new budgetary borrowing by the government from SBP but fair an alter in government’s cash adjust with the SBP.

The service said, the government remained committed to complying with its commitments beneath the corrected SBP Act and IMF program conditions.

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