Pakistan’s government retired a total debt of Rs188.01 billion during the week ending February 20, 2026, according to the latest weekly estimates released by the State Bank of Pakistan. The repayment has influenced the country’s borrowing position for the ongoing fiscal year, bringing the cumulative net borrowing figure for fiscal year 2026 to Rs96.59 billion.
The central bank’s data provides a breakdown of government borrowing and repayments based on three major categories that define the purpose of loans. These categories include budgetary support, commodity operations, and other financial requirements. Each segment reflects different areas where the government either borrows funds to meet fiscal needs or retires existing liabilities.
During the week under review, the largest share of debt retirement came from budgetary support obligations. The government retired Rs179.48 billion under this category, which is typically used to finance fiscal deficits and support government spending when revenues fall short of expenditures. Budgetary support remains the primary area through which the government manages short-term financing needs and adjusts its borrowing profile.
In addition to the repayment related to budgetary support, the government also retired Rs8.24 billion associated with commodity operations. These operations generally involve financing arrangements tied to the procurement, storage, and distribution of essential commodities such as wheat and other staple goods managed through public sector entities.
A smaller portion of the weekly repayment was recorded under the “others” category, where the government retired Rs285 million. Although this segment represents a minor share of total borrowing activity, it includes various financial adjustments and transactions that do not fall directly under the primary categories of budgetary support or commodity-related financing.
After incorporating the latest weekly figures, the cumulative borrowing pattern for fiscal year 2026 presents a mixed picture. The government has recorded net borrowing of Rs111.07 billion for budgetary support so far during the current fiscal year. In contrast, there has been a net retirement of Rs15.38 billion under commodity operations, reflecting repayments made against earlier financing tied to commodity procurement.
Additionally, the government has borrowed a total of Rs0.9 billion under the “others” category during the current fiscal year. These figures collectively contribute to the overall net borrowing level of Rs96.59 billion for fiscal year 2026.
The central bank’s data also highlights the two primary financing channels that support government borrowing for budgetary purposes: the State Bank of Pakistan and scheduled commercial banks. Both institutions play significant roles in providing liquidity to the government, although the pattern of borrowing and repayments varies between them.
According to the data, the government has retired a net amount of Rs2.06 trillion owed to the State Bank of Pakistan during the current fiscal year. This reflects a continued effort to reduce reliance on direct central bank borrowing, which has historically been associated with inflationary pressures and monetary policy concerns.
Within this repayment to the central bank, the federal government accounted for the largest share by retiring Rs1.92 trillion. Provincial governments collectively also reduced their borrowing from the central bank during the same period.
Specifically, provincial governments retired Rs72.14 billion of debt owed to the State Bank of Pakistan. In addition, the Azad Jammu and Kashmir government retired Rs36.54 billion, while the Gilgit-Baltistan government retired Rs32.44 billion during the fiscal year.
At the same time, government financing from scheduled commercial banks has increased significantly. Overall, the government has borrowed a net total of Rs2.17 trillion from scheduled banks during fiscal year 2026.
Within this borrowing from commercial banks, the federal government accounted for Rs2.41 trillion in financing. In contrast, provincial governments recorded a net retirement of Rs244.77 billion from scheduled banks during the same period.
These figures indicate a broader shift in the government’s borrowing strategy, where reliance on central bank financing has decreased while borrowing from commercial banks has expanded. Such changes are often linked to monetary policy frameworks designed to manage inflation and maintain financial discipline within the public sector.
The weekly debt figures released by the State Bank of Pakistan offer a detailed snapshot of the government’s fiscal financing patterns and provide insights into how public debt is being managed throughout the fiscal year. The latest repayment reflects ongoing adjustments in the government’s borrowing mix as it continues to balance financing needs with fiscal and monetary policy objectives.
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