KARACHI: Banks’ investments in government papers reached Rs26 trillion by December 2024, contributing 57.6 per cent to the central government’s domestic debt.

The latest data issued by the State Bank of Pakistan (SBP) revealed how banks’ money runs the central government and how the banks earn record profits from taxpayers’ money.

It’s not new that the government borrows from banks but the size of banks money has been increasing as domestic debts. The data also showed that the banks had been making record profits by getting high interest rates, like 22 per cent during the entire FY24, while the return on T-bills remained around this rate and sometimes even higher than the policy rate.

This massive investment in government papers........

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