Government bank borrowing rises to Rs5.9 trillion in FY26
Borrowing averaged nearly Rs500 billion a month and Rs16.4 billion a day, while Rs8 trillion has been allocated for debt servicing in FY27.
The federal government borrowed Rs5.9 trillion from banks during FY2025-26, up from Rs5.4 trillion in the previous fiscal year, according to State Bank of Pakistan data.
The borrowing averaged nearly Rs500 billion a month, or around Rs16.4 billion a day, during FY26.
The figures cover financing obtained from banks. Corporate entities also invest in government securities and account for about 25% of total investment in these instruments.
The continued reliance on domestic borrowing has increased public debt and future servicing costs.
The government has allocated Rs8 trillion for debt servicing in FY2026-27, equivalent to around 50% of the total federal budget outlay.
By comparison, the allocation for the Public Sector Development Programme stands at Rs1 trillion.
Banks have continued to invest heavily in government securities because they offer relatively risk-free returns, while the government is expected to require further borrowing to meet its financing and debt repayment needs.
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