The government of Pakistan retired Rs463.75 billion in debt during the week ended October 9, 2026, according to the State Bank of Pakistan’s weekly estimates. The latest repayment brings the government’s cumulative net debt retirement for fiscal year 2027 to approximately Rs2.97 trillion. Most of the reduction came from repayments related to budgetary support.
Budgetary Support Drives Debt Repayment
The government’s borrowing falls into three main categories: budgetary support, commodity operations and other purposes. During the reported week, the government retired Rs463.75 billion under budgetary support. It also borrowed Rs313 million for commodity operations while retiring Rs312 million under other categories.
As a result, cumulative net retirement for budgetary support reached Rs2.94 trillion during the current fiscal year. Meanwhile, the government retired Rs28.63 billion under commodity operations and Rs780 million under other categories.
Government Repays Banks and Central Bank
The State Bank of Pakistan and scheduled banks remain the government’s two main sources of financing for budgetary support.
During fiscal year 2027, the government sector recorded a net repayment of Rs288.3 billion to the central bank. The federal government retired Rs779.87 billion, while provincial governments borrowed Rs526.18 billion. Azad Jammu and Kashmir also retired Rs20.02 billion, while Gilgit-Baltistan repaid Rs14.59 billion.
Meanwhile, the government retired a net Rs2.66 trillion from scheduled banks during the fiscal year. The federal government accounted for Rs2.72 trillion in repayments, while provincial governments borrowed Rs60.57 billion.
What the Latest Figures Show
The latest estimates highlight a substantial reduction in the government’s net borrowing from domestic banking sources during the current fiscal year. However, net debt retirement does not necessarily mean that the government has eliminated its overall debt. The figures reflect the difference between new borrowing and repayments during the period.
The State Bank’s weekly data therefore offers a snapshot of government financing activity rather than a complete picture of Pakistan’s total public debt.
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