Govt clears more than Rs117 billion debt in one week

ISLAMABAD: The Pakistani government has retired a substantial debt of Rs117.62 billion for the week ending October 18.

This recent repayment now brings the total net retirement for the current fiscal year 2025 (FY25) to Rs1.38 trillion, according to weekly estimates from the State Bank of Pakistan (SBP).

According to Mettis Global, the borrowings are categorised into three groups including budgetary support, commodity operations and other purposes.

The net retirement for budgetary support was Rs116.52 billion, while Rs1.06 billion was retired from commodity operations. The government repaid Rs44.91 million in the others category.

So far this fiscal year, total retirements include Rs1.13 trillion for budgetary support, Rs243.27 billion for commodity operations, and Rs2.06 billion for other purposes. The main sources for budgetary financing are the State Bank of Pakistan and scheduled banks.

In fiscal year 2025, the government has borrowed a net sum of Rs473.45 billion from the central bank.

The Federal Government during these days, borrowed Rs618.09 billion, while the Provincial Government repaid Rs118.06 billion, the AJK Government repaid Rs20.92 billion, and the GB Government repaid Rs5.66 billion.

Conversely, the government has repaid a total of Rs1.61 trillion to scheduled banks. This includes Rs1.52 trillion repaid by the Federal Government and Rs84.46 billion by the Provincial Government.

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