Govt retires Rs184bn debt in a week

December 19, 2024 (MLN): The government of Pakistan has retired a debt of Rs183.91 billion during the week ended December 06, 2024, which brings its total net retirement for ongoing fiscal year 2025 to Rs2.56 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 Rs180.9bn, while the retirement off commodity operations stood at Rs3.22bn.

Meanwhile, a total of Rs206.95m was borrowed for others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs2.35 trillion for budgetary support, Rs214.49bn retirement off Commodity Operations, and Rs1.94bn 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 Rs502.59bn to the central bank, out of which the Federal Government retired Rs157.73bn whereas, the Provincial Government retired Rs314.65bn, AJK Government retired Rs23.12bn, and the GB Government retired Rs7.09bn.

On the other hand, the government has retired a net total of Rs1.85tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.7tr while the Provincial Government retired Rs141.53bn. 

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