Pakistan’s debt burden rose further in mid-March, with the government adding Rs258.48bn in fresh borrowing during the week ended March 13, 2026, according to the latest data released by the State Bank.
This pushed the total net borrowing for the ongoing fiscal year to Rs885.97bn, showing continued reliance on loans to meet spending needs.
The weekly figures show that most of the borrowing was used to support the budget. Around Rs264.71bn was raised for budgetary support, reflecting the government’s effort to bridge the gap between revenue and expenditure.
At the same time, some repayments were also made. Borrowing linked to commodity operations declined by Rs5.81bn during the week, while Rs422m was paid off under other heads.
Looking at the broader picture, total borrowing for budgetary support during the current fiscal year has reached Rs925.31bn. In contrast, Rs38.76bn has been paid back under commodity operations and Rs0.57bn under other categories.
Shift in borrowing sources
The data also highlights a clear shift in how the government is managing its debt. The State Bank and scheduled banks remain the main sources of funding.
So far this fiscal year, the government has returned a net Rs1.29tr to the central bank. The federal government alone retired Rs1.55tr, while provincial governments added Rs324.76bn in borrowing. Meanwhile, the governments of AJK and Gilgit-Baltistan reduced their debt by Rs37.82bn and Rs29.04bn respectively.
In contrast, borrowing from scheduled banks has increased. The government has taken a net Rs2.21tr from commercial banks. Of this, the federal government borrowed Rs2.45tr, while provincial governments reduced their borrowing by Rs240.25bn.
The figures suggest that while the government is cutting reliance on the central bank, it is turning more towards commercial banks to finance its needs, keeping overall debt levels on an upward path.
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