The government’s borrowings from the banking sector increased to Rs. 1.821 trillion in over nine months of the current fiscal year, as shown by data released by the State Bank of Pakistan (SBP).
This is 1.78 percent higher than the recorded borrowed amount in July to April of FY 2020 which was Rs. 1.789 trillion, the SBP data showed.
This increase has come primarily because of the financing of the budget deficit. Another reason for the overall high borrowings is the massive funding requirement to counter the pandemic across the country.
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Under the conditions of the International Monetary Fund’s (IMF) bailout package, the central bank’s window of borrowing had also closed down for the government, which gave the latter the impetus for higher borrowings from commercial banks.
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Foreign direct investment falls by 35pc in nine months
Sun Online Desk
Foreign direct investment (FDI) has kept falling during the current fiscal as it declined by 35 per cent at the end of the third quarter, reflecting no improvement in the situation for investors.
According to State Bank of Pakistan (SBP) data issued on Monday, the FDI fell by 35.1pc to $1.395 billion during July-March FY21 compared to $2.15bn in the same period of last fiscal.
The inflow in March was just $167.6 million compared to $278.7m in the same month of last year a decline of 40pc.
However, as the inflow in March this year slightly improved compared to February when the inflow was $155m, the FDI trend shows that the overall trend is on the decline.
Stocks gain as economy shows green shoots
Business
Stocks on Wednesday pressed ahead counting on upbeat economic numbers amid robust corporate earnings hopes, dealers said.
Pakistan stock exchange (PSX) KSE-100 shares index gained 0.58 percent or 262.65 points to close at 45,311.22 points. Volumes reduced to 341.88 million shares from 473.433 million in the last trading session.
Topline Securities in a note said encouraging large-scale manufacturing and auto sales numbers and decline in Pakistan Investment Bonds cutoff yields garnered investors interest, which led the market to make an intraday high of 298 points.
TRG, FFC and HBL emerged as the major contributors by cumulatively adding 69 points to index, the brokerage said.