The government of Pakistan retired Rs2.02 trillion in debt during the week ended August 28, 2026, bringing its cumulative net debt retirement for the ongoing fiscal year 2027 to Rs2.24 trillion, according to weekly estimates from State Bank of Pakistan. The latest figures show a substantial reduction in government sector borrowing during the reported week, with the largest portion of the retirement recorded under budgetary support. Government sector borrowings are classified into three broad categories based on their purpose: budgetary support, commodity operations and others. The weekly figures provide a breakdown of how much was retired under each category and also show the cumulative position recorded since the beginning of the current fiscal year.
According to the weekly estimates, the government retired Rs2,023.66 billion under budgetary support during the week. Borrowing related to commodity operations recorded a net retirement of Rs1.03 billion, while Rs122 million was retired under the category classified as others. The figures indicate that almost the entire weekly debt retirement came from the budgetary support category. On a cumulative basis for fiscal year 2027, the government has retired Rs2.22 trillion under budgetary support, while retirement under commodity operations has reached Rs15.92 billion. A further Rs1.21 billion has been retired under other government borrowing. The combined position brings the total net retirement across the three categories to approximately Rs2.24 trillion during the current fiscal year.
The two major sources of financing for government budgetary support are State Bank of Pakistan and scheduled banks. The latest figures show different borrowing and repayment positions among the federal and provincial governments as well as the governments of Azad Jammu and Kashmir and Gilgit Baltistan. During the current fiscal year, the government sector has paid a net amount of Rs430.24 billion to the central bank. Within this figure, the Federal Government retired Rs1.34 trillion from State Bank of Pakistan, while the Provincial Government borrowed Rs923.45 billion. The governments of Azad Jammu and Kashmir and Gilgit Baltistan also recorded debt retirement of Rs9.43 billion and Rs8.16 billion, respectively.
The position with scheduled banks also reflects a significant reduction in government borrowing. The government sector has retired a net total of Rs1.79 trillion owed to scheduled banks during the current fiscal year. The Federal Government accounted for the largest share of this repayment, retiring Rs1.93 trillion from scheduled banks. At the same time, the Provincial Government borrowed Rs137.52 billion from scheduled banks. These transactions contributed to the overall net retirement recorded during the fiscal year and show the different financing positions of federal and provincial governments during the period under review.
The weekly debt figures provide a picture of government financing activity across the banking system, particularly in relation to budgetary requirements. Budgetary support remains the largest category in the government borrowing structure, and the latest week saw more than Rs2 trillion retired under this heading alone. The repayment position involving State Bank of Pakistan and scheduled banks also shows that the Federal Government has been the main contributor to the reduction in outstanding borrowing, while provincial governments continued to record borrowing during the same period. The figures therefore reflect a combination of debt repayment at the federal level and additional financing requirements at the provincial level.
The latest estimates also show that the government’s debt position is being managed through multiple channels rather than through a single source of financing. State Bank of Pakistan and scheduled banks remain the principal sources for budgetary support, while separate borrowing categories cover commodity operations and other government requirements. During the week ended August 28, the scale of retirement was heavily concentrated in budgetary support, with relatively small amounts recorded under commodity operations and other borrowing. On a cumulative basis, the government has now retired Rs2.22 trillion in budgetary support debt during fiscal year 2027, alongside Rs15.92 billion in commodity operations and Rs1.21 billion under other categories.
The Rs2.02 trillion retirement recorded in a single week marks a notable movement in the government’s borrowing position at the start of fiscal year 2027. The data also highlights the contrasting positions of federal and provincial governments in relation to bank financing. While the Federal Government retired Rs1.34 trillion from State Bank of Pakistan and Rs1.93 trillion from scheduled banks, the Provincial Government borrowed Rs923.45 billion from the central bank and Rs137.52 billion from scheduled banks. The weekly estimates therefore show a broad reduction in net government borrowing, driven primarily by repayments made by the Federal Government and reflected in the overall Rs2.24 trillion net retirement recorded so far in the current fiscal year.
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