Pakistan’s government added Rs58.68 billion to its debt in the week ending May 23, 2025, taking the total net borrowing for the current fiscal year to Rs1.9 trillion, according to figures released by the State Bank of Pakistan.
The government’s borrowing is split into three main areas: budgetary support, commodity operations, and other uses. In the latest week, most of the borrowing, Rs61.95 billion, was for budgetary support, while repayments related to commodity operations reduced debt by Rs3.47 billion. Borrowing for other purposes was minimal, at just Rs200.64 million.
Since the fiscal year began, the government has borrowed Rs2.2 trillion to cover budget shortfalls. At the same time, it has repaid Rs301.94 billion linked to commodity operations and Rs0.9 billion for other categories.
The two biggest lenders to the government are the State Bank of Pakistan and scheduled banks. This year, the government actually paid back Rs280.94 billion to the central bank overall.
The Federal Government borrowed Rs398.31 billion from the State Bank, but provincial governments paid back a combined Rs646.03 billion. The governments of Azad Jammu and Kashmir and Gilgit-Baltistan also chipped in, repaying Rs23.11 billion and Rs10.1 billion respectively.
On the other hand, the government borrowed heavily from scheduled banks, with a net loan of Rs2.48 trillion. The Government borrowed Rs2.86 trillion from these banks while provincial governments repaid Rs381.08 billion.
While the government continues to borrow heavily to meet its budget needs, it’s also juggling repayments, highlighting struggle to balance books amid growing economic pressures.
