Dhaka, Oct. 2 -- The government has reined in bank borrowing after a spree early in the fiscal year, with analysts blaming the sluggish pace of development work.

Bangladesh Bank data show the government borrowed Tk 166.01 billion from commercial banks in July and August, the first two months of the fiscal year, while repaying Tk 37.28 billion owed to the central bank.

That leaves net borrowing from the banking system at Tk 128.72 billion for the period. July accounted for Tk 74.69 billion, falling to Tk 54.03 billion in August.

The first 13 days of the fiscal year alone saw net borrowing of Tk 92.09 billion, of which Tk 54.14 billion came from Bangladesh Bank and Tk 37.95 billion from commercial banks.

Central bank borrowing pumps fre...