Govt retires Rs413bn debt in a week

December 06, 2024 (MLN): The government of Pakistan has retired a debt of Rs413.23 billion during the week ended November 22, 2024, which brings its total net retirement for ongoing fiscal year 2025 to Rs2.09 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 Rs413.21bn, while the commodity operations remained unchanged.

Meanwhile, a total of Rs17.14m was retired off others during the week.

Accordingly, this takes the cumulative retirement off the current fiscal year 2025 to Rs1.88 trillion for budgetary support, Rs209.93bn retirement off Commodity Operations, and Rs2.12bn 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 Rs192.04bn to the central bank, out of which the Federal Government borrowed Rs263.63bn whereas, the Provincial Government retired Rs430.26bn, AJK Government retired Rs23.01bn, and the GB Government retired Rs2.4bn.

On the other hand, the government has retired a net total of Rs1.69tr to scheduled banks. Out of this amount, the Federal Government retired Rs1.59tr while the Provincial Government retired Rs98.44bn.

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