The government of Pakistan retired Rs1.85 billion in net debt during the week ended August 7, 2026, bringing its cumulative net debt retirement for the ongoing fiscal year 2027 to Rs97.77 billion, according to weekly estimates released by the State Bank of Pakistan (SBP). The latest figures cover government borrowing and repayments across budgetary support, commodity operations and other financing requirements.
Government sector borrowing is classified into three broad categories based on the purpose of financing. These include budgetary support, commodity operations and other requirements. During the week under review, the government recorded net retirement across all three categories, resulting in the overall retirement of Rs1.85 billion.
The largest portion of the weekly retirement came from budgetary support, where the government retired Rs1.64 billion. Borrowing associated with commodity operations also recorded a net retirement of Rs132 million during the week. Meanwhile, the government retired another Rs339 million under the category of other financing.
The latest weekly figures have increased the cumulative net retirement under budgetary support to Rs86.34 billion during FY27. Retirement related to commodity operations has reached Rs10.37 billion, while the government has retired Rs1.06 billion under other financing requirements.
Taken together, these figures bring total net government debt retirement to Rs97.77 billion since the beginning of the ongoing fiscal year. The cumulative position reflects the net movement between fresh government borrowing and repayments during the period covered by the SBP’s weekly estimates.
The State Bank of Pakistan and scheduled banks remain the two major sources of financing for the government’s budgetary support requirements. Government borrowing from these two segments has recorded significant movements during the current fiscal year, with the overall position reflecting different borrowing and repayment patterns among the federal, provincial and other government administrations.
During FY27, the government has borrowed a net Rs1.23 trillion from the State Bank of Pakistan. Within this amount, the Federal Government borrowed Rs705.71 billion from the central bank, while provincial governments borrowed a combined Rs550.27 billion.
The borrowing position also includes repayments by the governments of Azad Jammu and Kashmir and Gilgit-Baltistan. The AJK Government retired Rs15.63 billion during the period, while the GB Government retired Rs10.91 billion. These movements are reflected in the overall net borrowing position from the central bank.
The government’s financing position with scheduled banks has moved in the opposite direction. During the current fiscal year, the government has retired a net total of Rs1.32 trillion from scheduled banks. The Federal Government accounted for Rs1.45 trillion of the retirement, while provincial governments recorded net borrowing of Rs137.52 billion from scheduled banks.
The difference between borrowing from the State Bank of Pakistan and repayments to scheduled banks highlights the changing composition of government financing during FY27. While the government sector has recorded net borrowing from the central bank, it has simultaneously retired a substantial amount of financing obtained from scheduled banks.
The latest weekly retirement also comes against the broader backdrop of government efforts to manage its financing requirements during FY27. The weekly data provides a detailed view of how government borrowing is distributed between budgetary support, commodity operations and other requirements.
Budgetary support remains the largest category in terms of cumulative debt retirement, with Rs86.34 billion retired during the fiscal year so far. Commodity operations account for Rs10.37 billion, while other government financing represents Rs1.06 billion of the cumulative retirement.
The weekly figures also demonstrate that the government’s financing position can change through movements in borrowing and repayments across different banking channels. The Rs1.85 billion retirement recorded during the week resulted from net repayments across all three major categories of government financing. Overall, Pakistan’s government retired Rs1.85 billion in net debt during the week ended August 7, taking cumulative net retirement in FY27 to Rs97.77 billion. At the same time, the government has recorded net borrowing of Rs1.23 trillion from the State Bank of Pakistan and net retirement of Rs1.32 trillion from scheduled banks, reflecting a significant shift in the composition of government financing during the early months of the fiscal year.
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