Govt retires Rs2bn debt in a week

August 18, 2026 (MLN): The government of Pakistan has retired a debt of Rs1.85 billion during the week ended August 07, 2026, which brings its total net retirement for ongoing fiscal year 2027 to Rs97.77bn, 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 Rs1.64bn, while the borrowing for commodity operations stood at Rs132m.

Meanwhile, a total of Rs339m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2027 to Rs86.34bn for budgetary support, Rs10.37bn retirement off Commodity Operations, and Rs1.06bn 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 borrowed a net sum of Rs1.23 trillion from the central bank, out of which the Federal Government borrowed Rs705.71bn whereas, the Provincial Government borrowed Rs550.27bn, AJK Government retired Rs15.63bn, and the GB Government retired Rs10.91bn.

On the other hand, the government has retired a net total of Rs1.32tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.45tr while the Provincial Government borrowed Rs137.52bn.

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