Pakistan’s government added another Rs232.17 billion to its debt in the week ending April 10, pushing total net borrowing for the current fiscal year past Rs1 trillion, fresh data from the central bank showed.
The latest figures indicate that overall borrowing has now reached around Rs1.01 trillion so far in FY26, reflecting continued pressure on public finances.
Budget support drives fresh borrowing
Most of the increase came from borrowing for budgetary support, which stood at Rs240.46 billion during the week. This was partly offset by repayments in other areas.
Debt linked to commodity operations fell by Rs6.22 billion, while another Rs2.07 billion was paid off under other heads. These repayments helped limit the overall weekly increase.
Looking at the broader picture, borrowing for budget support has reached Rs1.06 trillion since the start of the fiscal year. At the same time, the government has reduced its debt by Rs55.27 billion in commodity operations and Rs3.57 billion in other categories.
Shift in borrowing sources continues
The data also shows a clear shift in how the government is managing its financing.
During FY26, the government has paid back a net Rs1.73 trillion to the central bank. This includes a large repayment of Rs1.8 trillion by the federal government. Provincial governments, however, added Rs141.51 billion in fresh borrowing, while Azad Jammu and Kashmir and Gilgit-Baltistan recorded net repayments.
In contrast, reliance on commercial banks has increased. The government has borrowed a net Rs2.79 trillion from scheduled banks so far this fiscal year. Of this, the federal government accounted for Rs3.04 trillion in borrowing, while provincial governments reduced their exposure by Rs246.69 billion.
The trend suggests that while the government continues to ease its dependence on central bank financing, it is leaning more heavily on commercial banks to meet its funding needs.
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