The government of Pakistan borrowed a net Rs1.19 trillion from scheduled banks during the first half of fiscal year 2025-26. Official data shows the borrowing covered the period from July to December.
During these six months, the government obtained net loans worth Rs1.192 trillion from the banking sector. This marks a sharp reversal from last year’s trend. In the same period of the previous fiscal year, the government repaid a net Rs1.255 trillion to banks.
Economists say the figures highlight growing fiscal pressure. Despite a record Rs2.5 trillion profit transfer from the State Bank of Pakistan last year, spending needs continue to outpace available resources.
Revenue data shows mixed results. The Federal Board of Revenue collected Rs6.159 trillion in taxes during the period. This fell short of the Rs6.490 trillion target by Rs33.1 billion.
Even so, tax receipts rose by nearly 10 percent year-on-year. In the same period last fiscal year, collections stood at Rs5.618 trillion, reflecting steady improvement in revenue mobilisation.
Banking experts say commercial banks remain willing lenders to the government. They view government securities as low-risk instruments with attractive returns. At a recent Treasury bill auction, banks submitted bids close to Rs2.5 trillion.
Analysts warn that borrowing pressures may persist. Rising expenditures continue to drive financing needs, even as revenues show gradual improvement. They say sustained fiscal discipline will remain critical in the months ahead.
