Govt borrows Rs116bn debt in a week

May 27, 2025 (MLN): The government of Pakistan has acquired an additional debt of Rs116.44 billion during the week ended May 16, 2025, which brings its total net borrowing for ongoing fiscal year 2025 to Rs1.84 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 borrowing for budgetary support was Rs115.7bn, while the borrowing for commodity operations stood at Rs59.15m.

Similarly, a total of Rs677.01m was borrowed for others during the week.

Accordingly, this takes the cumulative borrowing for the current fiscal year 2025 to Rs2.14 trillion for budgetary support, Rs298.47bn retirement off Commodity Operations, and Rs1.1bn 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 Rs362.85bn to the central bank, out of which the Federal Government borrowed Rs127.13bn whereas, the Provincial Government retired Rs456.44bn, AJK Government retired Rs23.4bn, and the GB Government retired Rs10.14bn.

On the other hand, the government has lent out a net total of Rs2.5tr to scheduled banks. Out of this amount, the Federal Government borrowed Rs2.88tr while the Provincial Government retired Rs381.08bn.

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