Govt retires Rs501m debt in a week

May 19, 2026 (MLN): The government of Pakistan has retired a debt of Rs501 million during the week ended May 08, 2026, which brings its total net borrowing for ongoing fiscal year 2026 to Rs568.09bn, 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 Rs817m, while the borrowing for commodity operations stood at Rs431m.

Meanwhile, a total of Rs116m was retired off others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2026 to Rs621.4bn for budgetary support, Rs49.62bn retirement off Commodity Operations, and Rs3.69bn 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 Rs1.66 trillion to the central bank, out of which the Federal Government retired Rs1.79 trillion whereas, the Provincial Government borrowed Rs203.12bn, AJK Government retired Rs36.49bn, and the GB Government retired Rs35.52bn.

On the other hand, the government has lent out a net total of Rs2.28tr to scheduled banks. Out of this amount, the Federal Government borrowed Rs2.6tr while the Provincial Government retired Rs317.97bn.

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