Govt’s bank borrowings plunge amid revenue dip

Amid falling tax collections, the federal government’s borrowing from banks plunged 84 per cent during the first seven and half months of the current fiscal year. The latest data released by the State Bank on Tuesday showed that the government is far from the volume of borrowings made during the last fiscal year. The federal government borrowed Rs658 billion from July 1 to Feb 14 FY25 compared to Rs4.044tr in the same period of last fiscal year. The government is trying to reduce its debts while facing a drastic drop in revenue collections. However, this shortfall would compel the government to borrow more from banks at the end of this fiscal year.