SBP - Banking Sector / Federal Board of Revenue

Govt borrows Rs3.5tr from banks in July-May

Shahid Iqbal
June 7, 2026

KARACHI: More taxes and more borrowings from banks have been helping the government to continue with higher spending in FY26 against the IMF’s suggestion for a cut in expenses.

The latest data released by the State Bank showed that the federal government borrowed heavily from banks during the first 11 months of the current fiscal year.

According to sources in the financial sector, the borrowing would be much higher during the closing days of FY26.

During the last quarter of fiscal year FY25, the government’s domestic debt rose by Rs2.954 trillion.
 

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