Islamabad, Pakistan (HRNW) – The government’s borrowing from banks has increased significantly during the first half of the fiscal year 2026, marking a sharp contrast to the same period last year when the government had repaid debt.
According to the latest data released by the State Bank of Pakistan (SBP), the government borrowed Rs. 672 billion from banks during the first six months of FY2025-26. In comparison, during the same period of the previous fiscal year, the government had repaid Rs. 1.7 trillion in net bank debt.
Bankers say the borrowing trend reflects rising fiscal pressure and revenue shortfalls, with the government likely to resort to further borrowing in the second half of the fiscal year.
They warned that weak tax collections and growing budgetary constraints could compel the government to rely even more heavily on the banking sector for liquidity to meet financial obligations.
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