Govt retires Rs55bn debt in a week

June 16, 2026 (MLN): The government of Pakistan has retired a debt of Rs54.59 billion during the week ended June 05, 2026, which brings its total net borrowing for ongoing fiscal year 2026 to Rs1.12 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 Rs56.38bn, while the borrowing for commodity operations stood at Rs1.79bn.

Meanwhile, a total of Rs4m was borrowed for others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2026 to Rs1.17 trillion for budgetary support, Rs53.74bn retirement off Commodity Operations, and Rs3.88bn 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 Rs2.17 trillion to the central bank, out of which the Federal Government retired Rs1.9 trillion whereas, the Provincial Government retired Rs221.18bn, AJK Government retired Rs32.85bn, and the GB Government retired Rs21.74bn.

On the other hand, the government has lent out a net total of Rs3.35tr to scheduled banks. Out of this amount, the Federal Government borrowed Rs3.55tr while the Provincial Government retired Rs207.75bn.

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