Govt adds Rs116bn to debt, pushing FY25 borrowing to Rs1.72tr

ISLAMABAD: Pakistan’s debt burden continued to rise as the government borrowed an additional Rs116.19 billion during the week ending May 9, 2025, according to the State Bank of Pakistan (SBP). This brings the total net borrowing for the ongoing fiscal year to Rs1.72 trillion.

The SBP’s latest report shows the government’s borrowing is categorised into three main purposes: budgetary support, commodity operations, and other miscellaneous needs.

Of the total borrowed during the week, Rs85.48 billion was drawn for budgetary support, while Rs30.58 billion was allocated for commodity operations. A relatively minor amount, Rs132.89 million, was borrowed under the ‘others’ category.

Cumulatively, since the beginning of the fiscal year, borrowing for budgetary support has climbed to Rs2.02 trillion. In contrast, the government has retired Rs298.53 billion of debt related to commodity operations and Rs1.78 billion under other heads.

The primary sources of financing for budgetary support remain the SBP and scheduled banks.

According to the SBP, the government has made a net repayment of Rs287.72 billion to the central bank so far this fiscal year. This figure includes Rs184.72 billion in fresh borrowing by the federal government, offset by repayments of Rs437.68 billion by provincial governments, Rs23.06 billion by the Azad Jammu and Kashmir (AJK) government, and Rs11.71 billion by the Gilgit-Baltistan (GB) administration.

Meanwhile, scheduled banks have borne the brunt of the government’s financing needs. A net amount of Rs2.31 trillion has been borrowed from these institutions. The federal government alone borrowed Rs2.69 trillion, while provincial governments collectively repaid Rs381.08 billion.

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