Govt clears Rs1.54 trillion in debt, repays Rs1.11 trillion to SBP

ISLAMABAD: The government of Pakistan has reduced its debt by Rs1.54 trillion so far in the fiscal year 2025, according to the latest figures from the State Bank of Pakistan (SBP).

Two main sources of borrowing used for budgetary support are the central bank and scheduled banks. This year, the government has repaid Rs1.11 trillion to the State Bank and Rs176.64 billion to scheduled banks.

Out of the Rs1.11 trillion repaid to the central bank, the federal government cleared Rs1.1 trillion, while the provincial government borrowed Rs11.61 billion.

Additionally, the Azad Jammu & Kashmir (AJK) government settled Rs20.17 billion in debt, and the Gilgit-Baltistan (GB) government repaid Rs7.42 billion.

From the Rs176.64 billion paid back to scheduled banks, the federal government repaid Rs92.18 billion, and the provincial government settled Rs84.46 billion.

Government borrowings fall into three key categories: budgetary support, commodity operations, and other loans. So far, the debt cleared includes Rs1.29 trillion for budgetary support, Rs242.22 billion for commodity operations, and Rs2.55 billion for other purposes.

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