Govt retires Rs326bn debt in a week

August 25, 2026 (MLN): The government of Pakistan has retired a debt of Rs325.87 billion during the week ended August 14, 2026, which brings its total net retirement for ongoing fiscal year 2027 to Rs423.64bn, 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 Rs327.37bn, while the borrowing for commodity operations stood at Rs1.57bn.

Meanwhile, a total of Rs68m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2027 to Rs413.71bn for budgetary support, Rs8.8bn retirement off Commodity Operations, and Rs1.13bn 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 Rs1.17 trillion from the central bank, out of which the Federal Government borrowed Rs585.16bn whereas, the Provincial Government borrowed Rs606.07bn, AJK Government retired Rs14.4bn, and the GB Government retired Rs10.87bn.

On the other hand, the government has retired a net total of Rs1.58tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.72tr while the Provincial Government borrowed Rs137.52bn.

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