The Government of Pakistan retired Rs783.38 billion in debt during the week ended September 11, 2026, according to weekly estimates released by the State Bank of Pakistan. The latest retirement brings the government’s cumulative net debt retirement for the ongoing fiscal year 2027 to Rs2.76 trillion, reflecting a significant reduction in outstanding borrowing across the government sector during the period under review.
Government sector borrowing is classified into three broad categories according to the purpose for which financing is obtained: budgetary support, commodity operations and other requirements. During the week ended September 11, budgetary support accounted for the largest portion of the debt retirement, with the government retiring a net Rs772.46 billion under this category. Debt associated with commodity operations recorded a further net retirement of Rs4.31 billion, while Rs6.61 billion was retired under other government borrowing.
The latest weekly figures have increased the cumulative net retirement under budgetary support to Rs2.74 trillion during fiscal year 2027. Government debt associated with commodity operations has recorded a cumulative net retirement of Rs23.97 billion, while Rs0.97 billion has been retired under the other category. The figures indicate that the bulk of the government’s net debt retirement during the fiscal year has been concentrated in financing obtained for budgetary support.
The State Bank of Pakistan and scheduled banks remain the two major sources of financing for the government’s budgetary requirements. During the current fiscal year, the government sector has paid off a net Rs239.56 billion to the central bank. Within this amount, the Federal Government retired Rs1.08 trillion, while the Provincial Government borrowed Rs864.3 billion. The Azad Jammu and Kashmir (AJK) Government also recorded a net retirement of Rs15.93 billion, while the Gilgit-Baltistan (GB) Government retired Rs9.61 billion.
Borrowing trends involving scheduled banks show a different distribution among the government entities. The government sector has retired a net total of Rs2.5 trillion from scheduled banks during the current fiscal year. The Federal Government accounted for the largest share of this reduction, retiring Rs2.56 trillion from scheduled banks. In contrast, the Provincial Government recorded net borrowing of Rs62.81 billion from scheduled banks over the same period.
The figures for the central bank and scheduled banks together provide a breakdown of how government borrowing has changed during fiscal year 2027. While the Federal Government has reduced its borrowing from both major sources, provincial borrowing has partly offset the reduction recorded at the federal level. The distinction between federal and provincial borrowing is reflected in the State Bank’s weekly estimates and forms part of the overall government sector financing position.
The Rs783.38 billion debt retirement recorded during the week also represents the latest movement in the government’s broader financing position. With cumulative net retirement reaching Rs2.76 trillion in fiscal year 2027, the weekly data provide an indication of the changes taking place in government borrowing across budgetary support, commodity operations and other financing requirements. The State Bank’s estimates will continue to provide regular updates on these movements as the fiscal year progresses.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.