PKPolitics Discuss » Current Issues

Punjab borrowing heavily from SBP

(11 posts)

  1. hariskhan
    member

    Assalam-o-Alaikum-Warahmat-ULLAH ALL,

    DAWN News: Punjab borrowing heavily from SBP

    Wednesday, 17 Feb, 2010
    --------------------------------------------------------
    The Punjab govt’s borrowing from SBP in FY09 was amazingly high at Rs62.3 billion. The other three provinces borrowed much less than Punjab. For instance, Sindh borrowed Rs11.9 billion in FY09. - File photo

    KARACHI: While the Punjab government is relying heavily on borrowings from the State Bank of Pakistan, three other provinces have retired their debts instead of fresh making borrowings till the first week of February from June 2009.

    A central bank report showed that the Punjab government borrowed Rs24.36 billion from the State Bank while the Federal government itself borrowed Rs61.7 billion from the SBP. Provinces earlier used to borrow from the State Bank to meet shortfall in their revenues and to meet their expenses.

    However, during the period, Sindh retired Rs2.45 billion, NWFP Rs2 billion and Balochistan Rs7.6 billion.

    The federal government borrowed Rs668.7 billion during the financial year (FY) 2008 which was highly inflicting for the economy as it produced record inflation up to 25 per cent. However, borrowings from the State Bank were curtailed last year after an agreement with the IMF which provided emergency loan to the government to avoid default on foreign payments.

    Banking experts said the provincial borrowing could produce the same impact conducive for higher inflation.

    They said there is a limit for each province to borrow from the State Bank but the overdraft is also common.

    As compared to Sindh, the Punjab government has been borrowing at least for the last couple of years.

    In FY 2008, the Punjab government borrowed Rs4.4 billion but it in FY09 its borrowing was amazingly high.

    According to State Bank, the Punjab government borrowed Rs62.3 billion in FY09.

    All other three provinces’ borrowings were much less than Punjab. Sindh borrowed Rs11.9 billion in FY09. The stock of debt at June 2009 shows that Sindh retired Rs20.4bn while the stock of Punjab at that time was Rs51bn.

    -------------------------------------------------------------------

    Money was borrowed from SBP in billions! of Rupees. Where is this money going ?

    Posted 2 years ago on 17 Feb 2010 15:33 #

  2. bft1
    Member

    they gave 8 billion subsidy on sasta aata jus in the 1 month of ramadan

    Posted 2 years ago on 17 Feb 2010 16:32 #

  3. RajputPuttar
    Member

    bft1

    There are two ways of doing things

    First , media centreed activities like 'Sassta Aaata' which may generate media hype but no constructive outcome.

    Second, proper planned projects which generatre employment , econmic activity and hence achieve goals in constructive manners.

    If u remember , when US in Great Depression in 1930's , the US govt borrowed heavily and started mega infrastructre from that borrowing and hence succeeded in coming out of depression. I believe thats the basic concept of deficit finiancing.

    Please don't defend every action of your favourites and lets analyze the things a bit more impartially.

    Posted 2 years ago on 17 Feb 2010 22:34 #

  4. bft1
    Member

    i totally agree wit u, wich part of my post implies support. The question was where duz all the money go n i gav an example of where it goes.

    Posted 2 years ago on 18 Feb 2010 4:09 #

  5. choosy
    Member

    Piasa ,PIasa ,Piasa
    Piasa bara yah Piyar?

    Posted 2 years ago on 18 Feb 2010 4:44 #

  6. hariskhan
    member

    Assalam-o-Alaikum-Warahmat-ULLAH ALL,

    I am a common man of this nation. We are ALL common people of this nation.

    We should ALL! be worried about;

    (1) WHERE state money is being spent
    (2) HOW this money is being spent
    (3) WHAT it is being spent on
    (4) WHAT OUTPUT is this nation getting out of it ?
    (5) Is the Govt. publishing any yearly reports about use of this money ?
    (6) Is there transparency in the adopted procedures

    I am a law abiding citizen. I have paid taxes from my salary over the past decade. So have many other citizens of this nation.

    ALL this money that the government spends comes out of the pockets of the common man of Pakistan, not from the rich, not from the elite. We DO! have a right to know where our tax money is going.

    Posted 2 years ago on 18 Feb 2010 8:26 #

  7. Beenai
    Moderator

    ---------------------------------------------------------------
    -----------------------
    deleted .

    Posted 2 years ago on 18 Feb 2010 12:41 #

  8. Beenai
    Moderator

    @Hariskhan and Rajputputtar,
    i am warning you two to avoid personal attacks on each other .....and try to be focused on the topic.

    Posted 2 years ago on 18 Feb 2010 13:15 #

  9. RajputPuttar
    Member

    beenai ,
    i asked u a very simple quesiton ? Did i say anything to any other member ? instead of answering my basic question , u r warning me ? thats strange.

    Posted 2 years ago on 18 Feb 2010 13:18 #

  10. Beenai
    Moderator

    Rajputt,
    i have warned Haris too ...
    this is what i can do ...to warn members to NOT to get personal with each other ...

    Posted 2 years ago on 18 Feb 2010 13:19 #

  11. RajputPuttar
    Member

    Beenai ,
    u can see with open eyes who started the brawl and then how can u treat the culprit and reacting with same stick ?

    Posted 2 years ago on 18 Feb 2010 13:24 #

RSS feed for this topic

Reply

You must log in to post.