Govt retires Rs117.6bn debt in a week

October 30, 2024 (MLN): The government of Pakistan has retired a debt of Rs117.62 billion during the week ended October 18, 2024, which brings its total net retirement for ongoing fiscal year 2025 to Rs1.38 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 Rs116.52bn, while the retirement off commodity operations stood at Rs1.06bn.

Similarly, a total of Rs44.91m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs1.13 trillion for budgetary support, Rs243.27bn retirement off Commodity Operations, and Rs2.06bn 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 borrowed a net sum of Rs473.45bn from the central bank, out of which the Federal Government borrowed Rs618.09bn whereas, the Provincial Government retired Rs118.06bn, AJK Government retired Rs20.92bn, and the GB Government retired Rs5.66bn.

On the other hand, the government has retired a net total of Rs1.61tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.52tr while the Provincial Government retired Rs84.46bn.

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