The government of Pakistan retired Rs5.84 billion in debt during the week ended February 06, 2026, bringing its cumulative net retirement for the ongoing fiscal year 2026 to Rs7.83bn, according to weekly estimates released by the State Bank of Pakistan. The latest figures reflect continued adjustments in public sector borrowing patterns amid evolving fiscal requirements and liquidity management strategies.
Government sector borrowing is classified into three primary categories based on the purpose of the loan: budgetary support, commodity operations, and others. The latest weekly data shows that net retirement under budgetary support amounted to Rs4.09bn, while commodity operations recorded a retirement of Rs3.47bn. In contrast, the government borrowed Rs1.72bn under the “others” category during the same period.
On a cumulative basis for fiscal year 2026, the breakdown indicates a net retirement of Rs1.22bn for budgetary support and Rs7.88bn for commodity operations. Meanwhile, borrowing under the “others” category has reached Rs1.27bn for the current fiscal year. These figures underline a broader pattern of debt recalibration across various financing channels.
Budgetary support financing primarily relies on two major sources: the State Bank of Pakistan and scheduled banks. During the current fiscal year, the government has paid off a net sum of Rs1.67 trillion to the central bank. Within this amount, the Federal Government retired Rs1.75tr, while the Provincial Government borrowed Rs160.85bn. At the same time, the AJK Government retired Rs47.25bn and the GB Government retired Rs29.44bn. This distribution highlights a divergence in fiscal positions between federal and sub-national tiers of government.
In contrast to repayments made to the central bank, the government has extended a net total of Rs1.67tr to scheduled banks during the fiscal year. Of this amount, the Federal Government borrowed Rs1.91tr, whereas the Provincial Government retired Rs244.77bn. This movement illustrates the dual-track nature of public sector financing, where repayments to one institutional lender may coincide with increased exposure to another.
The interplay between the central bank and scheduled banks remains central to Pakistan’s public debt strategy. While repayments to the State Bank of Pakistan can ease direct monetary financing pressures, reliance on scheduled banks reflects conventional market-based borrowing practices. These shifts are closely watched by financial market participants, as they influence liquidity conditions, interest rate dynamics, and overall fiscal sustainability.
The weekly retirement of Rs5.84bn, though modest in comparison to annual figures, signals incremental fiscal consolidation within the ongoing financial year. The cumulative net retirement of Rs7.83bn suggests a measured approach to debt management, balancing repayment obligations with operational funding requirements.
As fiscal year 2026 progresses, the trajectory of government borrowing and repayment will remain a focal point for policymakers, investors, and financial institutions. Weekly central bank estimates continue to provide insight into how the government navigates its financing needs across budgetary support, commodity operations, and other categories, shaping the broader macroeconomic landscape in the process.
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