Pakistan’s government added Rs188.81 billion to its debt during the week ending January 30, 2026, bringing the cumulative net borrowing for the current fiscal year 2026 to Rs154.03 billion, according to weekly estimates published by the State Bank of Pakistan (SBP). The increase reflects ongoing financing needs for budgetary and operational purposes amid evolving fiscal conditions.
Government borrowing is classified into three main categories based on the purpose of the loans: budgetary support, commodity operations, and other expenditures. In the week under review, net borrowing for budgetary support amounted to Rs194.38 billion, while retirement related to commodity operations stood at Rs5.72 billion. Additionally, borrowing for other purposes totaled Rs156 million during the same period.
Cumulatively, for fiscal year 2026, budgetary support borrowings have reached Rs158.89 billion, while retirement under commodity operations is recorded at Rs4.41 billion, and retirement of other borrowings totals Rs0.45 billion. The data underscores that the bulk of government financing continues to be directed toward meeting budgetary requirements, a critical component of public expenditure management.
The main channels for budgetary support financing are the State Bank of Pakistan and scheduled banks. During the current fiscal year, the federal government has retired a net sum of Rs1.74 trillion to the central bank, while provincial governments have net retired Rs15.57 billion. In addition, the Azad Jammu and Kashmir (AJK) government retired Rs28.4 billion, and the Gilgit-Baltistan (GB) government retired Rs16.02 billion, highlighting varying fiscal positions across different administrative units.
In contrast, the government has extended a net total of Rs1.93 trillion to scheduled banks. Within this framework, the federal government borrowed Rs2.12 trillion, whereas provincial governments retired Rs194.87 billion. These movements illustrate the interplay between central and provincial financing operations and the critical role of scheduled banks in facilitating government cash flow and liquidity management.
The data also reflect the government’s ongoing efforts to balance financing requirements for operational expenditures, commodity-related activities, and other purposes while managing repayments across federal and regional administrations. Analysts note that sustained borrowing and repayments from central and scheduled banks are key to maintaining liquidity stability and ensuring timely funding of public obligations.
Observers highlight that monitoring government borrowing trends provides important signals for monetary policy and financial markets. Changes in borrowing patterns can affect interest rates, banking sector liquidity, and broader macroeconomic stability. As Pakistan navigates fiscal pressures, weekly updates from the SBP offer transparency on public sector debt dynamics and serve as a reference for investors, policymakers, and economic analysts tracking the evolution of the country’s fiscal framework.
The weekly borrowing data for January 2026 thus underscores the government’s continued reliance on institutional financing channels while reflecting efforts to manage repayments across different layers of government, balancing operational needs with debt sustainability concerns.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.