KARACHI - The governments budgetary borrowings from the scheduled banks soared by Rs184.46 billion during July-9th January FY10. From July 01 to January 09, 2010, the government borrowed Rs 203.9 billion from the commercial banks for the purpose of budgetary and public spending during the period under review, compared with Rs 19.44 billion of the same months of FY09. However, the government borrowing from the banking system for the budgetary support during Jul-9th Jan FY10 remained lower compared to the corresponding period of current financial year as such borrowings declined to Rs181.5 billion from Rs 262.7b of last fiscal year. The sharp increase in the share of banks financing in the total budgetary expenses of the federal government is attributed to banks unwillingness to lend massively to the private sector due to its sluggish demand by the corporate sector. A provisional data on monetary aggregates compiled by the SBP revealed that as on January 9, 2010, the government debt retirements from the central bank contained to Rs 22.33 billion as against of Rs 282.2 billion in July-January FY09. The SBP data further showed that the net government and non-government sectors borrowings dropped to Rs 163.8 billion and Rs165.5 billion during July-January FY10 from Rs 271 and Rs 213.2 billion respectively, of the equivalent months of previous year. For commodity operations, the government had borrowed Rs 16.403 billion as compared to Rs 9.420 billion in the reported period of Jul-Jan FY10. It may be pointed out here that SBP in its quarterly report has warned that the risk of high resources from the banking system may be high in the comings months in case of delays in materialization of committed external flows, particularly given the uncertainty attached with funds mobilized through NSS.