Govt retires Rs141bn debt in a week

December 11, 2024 (MLN): The government of Pakistan has retired a debt of Rs140.89 billion during the week ended November 29, 2024, which brings its total net retirement for ongoing fiscal year 2025 to Rs2.23 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 Rs139.52bn, while the retirement off commodity operations stood at Rs1.34bn.

Similarly, a total of Rs25.25m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs2.02 trillion for budgetary support, Rs211.27bn retirement off Commodity Operations, and Rs2.14bn 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 Rs344.41bn to the central bank, out of which the Federal Government borrowed Rs31.69bn whereas, the Provincial Government retired Rs351.35bn, AJK Government retired Rs23.84bn, and the GB Government retired Rs0.91bn.

On the other hand, the government has retired a net total of Rs1.67tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.58tr while the Provincial Government retired Rs98.44bn.

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