Govt retires Rs277bn debt in a week

January 14, 2025 (MLN): The government of Pakistan has retired a debt of Rs277.26 billion during the week ended January 03, 2025, which brings its total net retirement for ongoing fiscal year 2025 to Rs2.64 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 Rs272.64bn, while the retirement off commodity operations stood at Rs5.24bn.

Meanwhile, a total of Rs622.87m was borrowed for others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs2.42 trillion for budgetary support, Rs221.82bn retirement off Commodity Operations, and Rs1.67bn 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 Rs732.93bn to the central bank, out of which the Federal Government retired Rs76.1bn whereas, the Provincial Government retired Rs624.98bn, AJK Government retired Rs22.22bn, and the GB Government retired Rs9.63bn.

On the other hand, the government has retired a net total of Rs1.68tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.54tr while the Provincial Government retired Rs141.53bn.

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