Govt debt grows by Rs276 billion, total for FY25 reaches Rs1.26 trillion

ISLAMABAD: The Government of Pakistan has taken on an additional debt of Rs276 billion in the week ending October 11, 2024, raising the total net debt for the current fiscal year 2025 to Rs1.26 trillion, as per data from the State Bank of Pakistan (SBP).

Government borrowings are typically divided into three main categories: budgetary support, commodity operations, and other purposes.

Of the total debt acquired during the week, Rs275.47 billion was for budgetary support, while Rs0.81 million was retired from commodity operations. Additionally, Rs531.26 million was borrowed for other purposes.

In terms of overall debt for fiscal year 2025, the government has retired Rs1.02 trillion for budgetary support, Rs242.22 billion for commodity operations, and Rs2.02 billion for other categories.

The primary sources of budgetary support financing are the State Bank of Pakistan and scheduled banks. This fiscal year, the government has borrowed Rs579.64 billion from the central bank, with the Federal Government accounting for Rs550.13 billion.

Meanwhile, the Provincial Government borrowed Rs56.66 billion, while the governments of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) retired Rs20.58 billion and Rs6.57 billion, respectively.

In contrast, the government has repaid a net total of Rs1.6 trillion to scheduled banks, with the Federal Government repaying Rs1.51 trillion and the Provincial Government repaying Rs84.46 billion.

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