Pakistan’s government retired Rs501 million in debt during the week ended May 08, 2026, according to weekly estimates released by the State Bank of Pakistan. Despite the weekly repayment, overall borrowing for the ongoing fiscal year 2026 has now reached Rs568.09 billion on a net basis.
The central bank data shows that government borrowings are tracked across three main heads: budgetary support, commodity operations and other payments.
Under budgetary support, the government recorded a net retirement of Rs817 million during the week. Commodity operations, however, showed fresh borrowing of Rs431 million. In the “other” category, Rs116 million was also retired.
On a cumulative basis for FY2026 so far, budgetary support stands at Rs621.4 billion. Commodity operations show a net retirement of Rs49.62 billion, while the “other” category reflects a retirement of Rs3.69 billion.
Borrowing trends also highlight a clear split between financing sources. The State Bank of Pakistan and scheduled banks remain the two major channels for government funding.
During the current fiscal year, the government has made a net repayment of Rs1.66 trillion to the central bank. Within this, the federal government retired Rs1.79 trillion, while provincial governments borrowed Rs203.12 billion. Azad Jammu and Kashmir repaid Rs36.49 billion, and Gilgit-Baltistan retired Rs35.52 billion.
In contrast, the government has raised a net Rs2.28 trillion from scheduled banks. The federal government accounted for borrowing of Rs2.6 trillion, while provincial governments retired Rs317.97 billion.
Meanwhile, broad money, or M2, dropped by Rs451.24 billion week-on-week to Rs42.59 trillion as of May 08, 2026. However, compared to June 2025, M2 has still increased by Rs2.09 trillion from Rs40.51 trillion.
Currency in circulation rose by Rs204.17 billion in the same week to Rs11.85 trillion. Over the fiscal year so far, it has increased by Rs1.22 trillion from Rs10.63 trillion recorded at the end of June 2025.
Its share in M2 also edged up to 27.82 percent, compared to 27.06 percent a week earlier and 26.25 percent in June 2024.
Deposits held with banks stood at Rs30.7 trillion, showing a weekly decline of Rs644.47 billion, although they are still up Rs884.29 billion so far in the fiscal year.
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