KARACHI: The cash-strapped government benefited greatly from the State Bank of Pakistan’s (SBP) record profit of Rs3.4 trillion in FY24.
CEO of Topline Securities Mohammed Sohail stated, “According to the FY24 audited annual account of SBP, a record Rs3.4tr was earned in 2023-24 compared to Rs1.1tr in the preceding year.”
The government’s largest source of profit has been the central bank, which has outperformed any possible revenue from commerce or industry.
The economy was not doing well, according to Mr. Sohail, but the government would be supported by the SBP’s profits.
In FY25, the government would have to pay back Rs9 trillion in debt.
The federal government will receive Rs2.72 trillion, or 80%, of the profit made by the State Bank.
“SBP made this enormous profit because of higher interest rates and a stable rupee,” Mr. Sohail stated, noting that the government’s total liquidity has increased.
The government this week rejected every bid for Treasury Bills, despite raising less than half of the objective through the auction of Pakistan Investment Bonds, because of the enhanced liquidity.
