The federal government retired Rs. 2.02 trillion in debt during the week ended August 28, 2026, according to weekly estimates released by the State Bank of Pakistan (SBP).
The latest repayment brought the government’s net debt retirement during FY2027 to around Rs. 2.24 trillion.
The government classifies its borrowing and repayments into three categories: budgetary support, commodity operations, and other purposes.
During the week under review, the government retired Rs. 2.023 trillion under budgetary support. It also repaid Rs. 1.03 billion related to commodity operations and Rs. 122 million under other purposes.
As a result, cumulative debt retirement during FY2027 reached approximately Rs. 2.22 trillion under budgetary support, while repayments stood at Rs. 15.92 billion under commodity operations and Rs. 1.21 billion under other purposes.
The State Bank of Pakistan and scheduled banks remain the two major sources of budgetary financing for the government.
During FY2027, the government recorded a net repayment of Rs. 430.24 billion to the central bank.
The Federal Government alone retired Rs. 1.34 trillion from the State Bank, while provincial governments borrowed Rs. 923.45 billion.
Meanwhile, the Azad Jammu and Kashmir government retired Rs. 9.43 billion, while the Gilgit-Baltistan government repaid Rs. 8.16 billion.
The government also retired a net Rs. 1.79 trillion from scheduled banks during FY2027.
The Federal Government accounted for Rs. 1.93 trillion of the repayment. In contrast, provincial governments borrowed Rs. 137.52 billion from scheduled banks during the period.
The latest figures indicate a significant reduction in government borrowing from the banking system during the early months of FY2027, with repayments largely driven by the Federal Government.
