July-Oct budgetary borrowings rise to Rs318bn.

KARACHI -- The government's borrowing for budgetary support increased by five times during the first four months of current fiscal year.

The State Bank of Pakistan (SBP), in its latest report, showed that during July-Oct FY20, the government borrowed Rs318 billion for budgetary support against Rs53.5bn in the same period last year.

The increase in budgetary borrowing is due to rising fiscal deficit amid a shortfall in revenue collection. During the first four months of current fiscal year, the revenue shortfall rose to Rs162bn. Total collections during the period clocked in at Rs1.28 trillion against the target of Rs1.447tr.

The massive increase in budgetary borrowing is fatal for the economy particularly due to large increase in interest payments.

The SBP, in its report, also said that around 60 per cent of the...