Govt borrows Rs277bn debt in a week

February 11, 2025 (MLN): The government of Pakistan has acquired an additional debt of Rs276.78 billion during the week ended January 31, 2025, which brings its total net retirement for ongoing fiscal year 2025 to Rs1.3 trillion, according to the central bank's weekly estimates.

The government sector borrowings are divided into three broad categories based on the purpose of the loan which are budgetary support, commodity operations, and others.

Split three ways between these broad categories, the weekly net borrowing for budgetary support was Rs280.03bn, while the retirement off commodity operations stood at Rs3.28bn.

Meanwhile, a total of Rs37.54m was borrowed for others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs1.07 trillion for budgetary support, Rs228.23bn retirement off Commodity Operations, and Rs0.97bn 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 Rs461.58bn to the central bank, out of which the Federal Government borrowed Rs254.56bn whereas, the Provincial Government retired Rs690.19bn, AJK Government retired Rs22.65bn, and the GB Government retired Rs3.3bn.

On the other hand, the government has retired a net total of Rs613.08bn to scheduled banks. Out of this amount, the Federal Government retired Rs565.95bn while the Provincial Government retired Rs47.13bn.

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