KARACHI (INP) After limiting borrowing from the central bank to zero, the government has increased reliance on commercial banks by borrowing Rs28.64 billion during first 23 days of the current fiscal year. In the same period last year, the banks received a deposit of Rs6.69 billion, according to data released by State Bank of Pakistan (SBP) on Monday. The government after an agreement with the central bank had retired borrowings to both the end-June 2010 level as well as the limit of end-September 2010 level. The government has expressed its commitment to continue with the stance of zero-borrowing from the SBP in yearly flow terms during FY12, according to the Monetary Policy Statement (MPS) released last Saturday. The government aggressively borrowed from the commercial banks during the last fiscal year, taking the total to Rs616.74 billion in FY11 from Rs309 billion in the previous fiscal year. In the MPS, the central bank said that the borrowing from scheduled banks will need to be monitored closely to assess potential risks for macroeconomic stability. The commercial banks thirst for investment in government papers also raised concerns about fall in credit to private sector. The SBP said that an increase in private sector credit during first half of FY11 was primarily due to working capital requirement, which is expected to decline in the second half, once the final figures are released. The net government sector borrowing during first 23 days of current fiscal year, however, eased to Rs27.7 billion as against Rs42.50 billion. During the period, the government restricted its borrowing from the central bank and, on the contrary, deposited a huge sum of Rs44 billion. The government borrowing from the central bank has been widely criticised by all segments of the society for fuelling inflation. The total government borrowing from the SBP during FY11 was at Rs98 billion as against Rs30.13 billion in the previous fiscal year. The stock of government borrowing from the central bank stood at Rs1.239 trillion by end-June 2011.