Govt retires Rs123bn debt in a week

November 27, 2024 (MLN): The government of Pakistan has retired a debt of Rs123.45 billion during the week ended November 15, 2024, which brings its total net retirement for ongoing fiscal year 2025 to Rs1.68 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 Rs122.22bn, while the retirement off commodity operations stood at Rs1.19bn.

Similarly, a total of Rs35.68m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs1.47 trillion for budgetary support, Rs209.93bn retirement off Commodity Operations, and Rs2.1bn 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 borrowed a net sum of Rs285.37bn from the central bank, out of which the Federal Government borrowed Rs395.28bn whereas, the Provincial Government retired Rs83.14bn, AJK Government retired Rs23.62bn, and the GB Government retired Rs3.15bn.

On the other hand, the government has retired a net total of Rs1.75tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.65tr while the Provincial Government retired Rs98.44bn.

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