Govt retires Rs351bn debt in a week

July 28, 2026 (MLN): The government of Pakistan has retired a debt of Rs351.25 billion during the week ended July 17, 2026, which brings its total net retirement for ongoing fiscal year 2027 to Rs606.45bn, 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 Rs351.18bn, while the borrowing for commodity operations stood at Rs4m.

Meanwhile, a total of Rs73m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2027 to Rs597.89bn for budgetary support, Rs8.46bn retirement off Commodity Operations, and Rs0.11bn 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 Rs1.35 trillion from the central bank, out of which the Federal Government borrowed Rs996.23bn whereas, the Provincial Government borrowed Rs375.22bn, AJK Government retired Rs15.85bn, and the GB Government retired Rs7.65bn.

On the other hand, the government has retired a net total of Rs1.95tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.95tr while the Provincial Government retired Rs0bn.

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