Govt retires Rs2tr debt in a week

September 09, 2026 (MLN): The government of Pakistan has retired a debt of Rs2.02 trillion during the week ended August 28, 2026, which brings its total net retirement for ongoing fiscal year 2027 to Rs2.24 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 Rs2023.66bn, while the borrowing for commodity operations stood at Rs1.03bn.

Meanwhile, a total of Rs122m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2027 to Rs2.22 trillion for budgetary support, Rs15.92bn retirement off Commodity Operations, and Rs1.21bn 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 Rs430.24bn to the central bank, out of which the Federal Government retired Rs1.34 trillion whereas, the Provincial Government borrowed Rs923.45bn, AJK Government retired Rs9.43bn, and the GB Government retired Rs8.16bn.

On the other hand, the government has retired a net total of Rs1.79tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.93tr while the Provincial Government borrowed Rs137.52bn.

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