Govt pays off Rs1.54tr debt

October 16, 2024 (MLN): The government of Pakistan has retired a debt of Rs1.54 trillion on a net basis in the ongoing fiscal year 2025, according to the central bank's weekly estimates.

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 Rs1.11tr to the central bank, and Rs176.64 billion to scheduled banks.

Of the total Rs1.11tr debt repaid to the central bank, the Federal Government retired Rs1.1tr whereas, the Provincial Government borrowed Rs11.61 billion, AJK Government retired Rs20.17bn, and the GB Government retired Rs7.42bn.

Of the total Rs176.64bn debt repaid to the scheduled banks, the Federal Government retired Rs92.18bn while the Provincial Government retired Rs84.46bn.

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 cumulative retirement off budgetary support was Rs1.29 trillion, Rs242.22bn retirement off Commodity Operations, and Rs2.55bn retirement off others.

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