Govt retires Rs261bn debt in a week

October 07, 2026 (MLN): The government of Pakistan has retired a debt of Rs261.44 billion during the week ended September 25, 2026, which brings its total net retirement for ongoing fiscal year 2027 to Rs2.99 trillion, 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 Rs262.13bn, while the borrowing for commodity operations stood at Rs287m.

Meanwhile, a total of Rs403m was borrowed for others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2027 to Rs2.96 trillion for budgetary support, Rs29.67bn retirement off Commodity Operations, and Rs0.3bn 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 Rs62.21bn to the central bank, out of which the Federal Government retired Rs694.4bn whereas, the Provincial Government borrowed Rs658.79bn, AJK Government retired Rs16.96bn, and the GB Government retired Rs9.65bn.

On the other hand, the government has retired a net total of Rs2.9tr to scheduled banks. Out of this amount, the Federal Government retired Rs2.97tr while the Provincial Government borrowed Rs62.81bn.

Copyright Mettis Link News