Govt retires Rs15bn debt in a week

January 25, 2025 (MLN): The government of Pakistan has retired a debt of Rs15.27 billion during the week ended January 17, 2025, which brings its total net retirement for ongoing fiscal year 2025 to Rs2.13 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 Rs10.98bn, while the retirement off commodity operations stood at Rs4.99bn.

Meanwhile, a total of Rs700.51m was borrowed for others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs1.89 trillion for budgetary support, Rs234.2bn retirement off Commodity Operations, and Rs0.99bn 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 Rs966.51bn to the central bank, out of which the Federal Government retired Rs223.31bn whereas, the Provincial Government retired Rs712.97bn, AJK Government retired Rs24.6bn, and the GB Government retired Rs5.63bn.

On the other hand, the government has retired a net total of Rs923.99bn to scheduled banks. Out of this amount, the Federal Government retired Rs876.87bn while the Provincial Government retired Rs47.13bn.

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