Govt retires Rs2bn debt in a week

Mettis Global reported that the government retired a net Rs1.85 billion of debt in the week ended August 7, 2026, lifting its total net retirement for fiscal year 2027 to Rs97.77bn. The data comes from weekly central bank estimates, which divide government sector borrowing into budgetary support, commodity operations and other purposes.

Of the week's total, budgetary support accounted for Rs1.64bn, commodity operations Rs132m and other categories Rs339m. On a cumulative basis, retirements for the year reached Rs86.34bn for budgetary support, Rs10.37bn for commodity operations and Rs1.06bn for other purposes.

The report also puts net government borrowing from the central bank this year at Rs1.23 trillion, with the federal government accounting for Rs705.71bn and provincial governments for Rs550.27bn. Net retirements to scheduled banks reached Rs1.32tr, of which the federal government accounted for Rs1.45tr, while provincial borrowing from them stood at Rs137.52bn. Mettis Global noted that the State Bank and scheduled banks are the two biggest sources of financing for budgetary support.