Govt retires Rs116bn debt in a week

January 27, 2026 (MLN): The government of Pakistan has retired a debt of Rs116.48 billion during the week ended January 16, 2026, which brings its total net retirement for ongoing fiscal year 2026 to Rs334.36bn, according to the central bank's weekly estimates.

The government sector borrowings are divided into three broad categories based on the purpose of loan which are budgetary support, commodity operations, and others.

Split three ways between these broad categories, the weekly net retirement off budgetary support was Rs104.32bn, while the retirement off commodity operations stood at Rs12.13bn.

Similarly, a total of Rs28m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2026 to Rs329.98bn for budgetary support, Rs2.64bn retirement off Commodity Operations, and Rs1.74bn retirement off others.

The two biggest sources of financing for budgetary support are the State Bank of Pakistan and the scheduled banks.

This fiscal year, the government has paid off a net sum of Rs2.07 trillion to the central bank, out of which the Federal Government retired Rs2.15 trillion whereas, the Provincial Government borrowed Rs125.16bn, AJK Government retired Rs26.39bn, and the GB Government retired Rs18.37bn.

On the other hand, the government has lent out a net total of Rs1.74tr to scheduled banks. Out of this amount, the Federal Government borrowed Rs1.94tr while the Provincial Government retired Rs194.87bn.

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