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Home Business Economy

Money supply decreases by 2.4pc

ToP by ToP
August 9, 2012
in Economy
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Revelations by money laundering suspect to be assessed

Revelations by money laundering suspect to be assessed

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Money supply decreases

KARACHI: The central bank figures show the money supply declining by 2.40 percent to Rs183 billion during four weeks of FY13 compared to a decline of 1.98 percent to Rs132 billion during the same period last year, said an InvestCap Research report issued Wednesday.

It said though M2 growth remained in negative zone, the government borrowing from the commercial banks accelerated by 147 percent WoW (101 percent YoY) to Rs181 billion during four weeks of FY13. On the flip side, Govt. retired Rs187 billion to the SBP during the period under review compared to the retirement of Rs25 billion during the same period in FY12.

The total government borrowing reached to Rs 6.9 billion compared to Rs 67 billion witnessed during the same period last year. Credit to non-government sector also declined to Rs 51.64 billion, (FY12: Rs 105 billion). Govt. retired borrowing of Rs 52 billion to non-govt. sector, in which retiring of Rs 52.3 billion in account of credit to private sector and borrowing Rs 745 million from public sector enterprises.

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