The Government of Pakistan recorded additional borrowing of Rs77.96 billion during the week ended July 24, 2026, according to weekly estimates from the State Bank of Pakistan. The latest borrowing has brought the government’s cumulative net retirement position for the ongoing fiscal year 2027 to Rs528.5 billion, reflecting continued changes in the government’s financing position across different borrowing categories.
Government sector borrowing is classified into three broad categories based on the purpose for which financing is obtained. These include budgetary support, commodity operations and other requirements. During the week under review, budgetary support accounted for the largest portion of new borrowing, while additional financing was also recorded for commodity operations.
Borrowing for budgetary support reached Rs67.64 billion during the week ended July 24. This was followed by Rs10.93 billion in borrowing for commodity operations. At the same time, the government retired Rs611 million under the category covering other financing requirements.
The weekly movement has contributed to changes in the cumulative financing position recorded since the beginning of fiscal year 2027. According to the State Bank of Pakistan estimates, cumulative net retirement for budgetary support stood at Rs530.25 billion during the fiscal year. Meanwhile, the government recorded Rs2.47 billion in borrowing for commodity operations, while Rs0.72 billion was retired under other categories.
The government’s financing requirements are primarily supported by two major sources within the domestic banking system: the State Bank of Pakistan and scheduled banks. Their respective roles in government financing have continued to shape the overall borrowing and retirement position during the current fiscal year.
During fiscal year 2027, the government has borrowed a net Rs1.37 trillion from the central bank. The figure includes borrowing by federal and provincial authorities, while the governments of Azad Jammu and Kashmir and Gilgit Baltistan recorded net retirements.
The Federal Government accounted for Rs750.14 billion of borrowing from the central bank during the period. Provincial governments borrowed Rs645.31 billion, while the Azad Jammu and Kashmir Government retired Rs15.4 billion. The Government of Gilgit Baltistan also recorded net retirement of Rs7.67 billion.
The figures highlight the different financing positions of federal and subnational governments during the current fiscal year. While the Federal Government and provincial governments recorded net borrowing from the central bank, the governments of Azad Jammu and Kashmir and Gilgit Baltistan reduced their outstanding borrowing through net retirements.
Scheduled banks represent the other major source of government financing. During the current fiscal year, the government recorded a net retirement of Rs1.9 trillion against scheduled banks. The Federal Government accounted for the entire amount, retiring a net Rs1.9 trillion, while provincial governments recorded no net borrowing or retirement from scheduled banks during the period.
The contrasting positions between the central bank and scheduled banks indicate a shift in the composition of government financing during fiscal year 2027. While the government has recorded substantial net borrowing from the State Bank of Pakistan, it has simultaneously retired a significant amount of financing obtained from scheduled banks.
The latest weekly data comes as government financing remains an important component of Pakistan’s banking and economic landscape. Movements in government borrowing can affect liquidity conditions within the banking system and influence the allocation of funds between public sector financing and other areas of the economy.
The Rs77.96 billion increase recorded during the week therefore forms part of a broader financing picture in which borrowing and retirement are taking place across multiple government entities and financing categories. The State Bank of Pakistan’s weekly estimates provide a snapshot of these movements and show how the government’s financing position is evolving during fiscal year 2027.
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