Pakistan’s borrowing trend continued its upward trajectory as the government accumulated an additional Rs161.73 billion during the week ending November 14, 2025, according to the State Bank of Pakistan’s latest weekly estimates. This single-week addition has contributed to the overall fiscal picture for the ongoing financial year 2026, bringing the government’s total net retirement to Rs1.09 trillion. The data underlines the persistent challenge of managing fiscal requirements against the backdrop of rising domestic and external financial obligations.
Government borrowing is structured into three core segments: budgetary support, commodity operations, and a miscellaneous category labeled as others. Each category reflects distinct financial needs within the broader budget framework. In the week under review, the bulk of loan activity was driven by budgetary support, which accounted for Rs159.21 billion. Commodity operations contributed a further Rs2.57 billion to the weekly borrowing, while Rs49 million was retired under the miscellaneous category.
When viewed cumulatively, the fiscal year 2026 position shows a net retirement of Rs1.11 trillion for budgetary support. Meanwhile, commodity operations have resulted in a net borrowing of Rs15.55 billion, and the category of others has registered a total retirement of Rs1.2 billion. These figures illustrate how the government continues to navigate short-term financing pressures while managing operational overheads and ongoing commitments.
Budgetary support in Pakistan primarily relies on two major financing sources: the State Bank of Pakistan and the scheduled banks operating within the country. As part of fiscal management this year, the government has retired a substantial net amount of Rs1.17 trillion to the central bank. A closer look at this figure reveals that the Federal Government accounted for a retirement of Rs1.41 trillion. In contrast, borrowing activity varied across provincial and territorial administrations, with the Provincial Government borrowing Rs273.68 billion, the Azad Jammu and Kashmir Government retiring Rs25.04 billion, and the Gilgit-Baltistan Government retiring Rs13.08 billion.
On the scheduled banking side, the lending flow reflects a different pattern. So far in fiscal year 2026, the government has lent a net total of Rs65.65 billion to scheduled banks. This includes Rs138.45 billion borrowed by the Federal Government and Rs72.81 billion retired by the Provincial Government. The divergent movements between central bank and scheduled bank channels show the government’s multi-layered approach in balancing liquidity requirements across different administrative levels.
The weekly increase of Rs161.73 billion highlights not only the immediate need for fiscal adjustment but also the broader challenge of sustaining financial stability. With cumulative indicators showing both retirements and new borrowings across categories, the coming months will likely shape how Pakistan navigates its fiscal responsibilities under ongoing economic conditions.
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