KARACHI: The government plans to borrow approximately Rs4.8 trillion through banks and capital markets during the September-November period to meet its financing needs, amid rising fiscal pressures and the economic impact of recent floods.
According to data released by the State Bank, the borrowing includes Rs2.875tr through Treasury Bills and Rs2tr through Pakistan Investment Bonds (PIBs). Of the PIB target, Rs1.2tr will be raised through fixed-rate bonds and Rs750bn via floating-rate instruments.
The T-bill auction schedule indicates the government aims to raise Rs900bn through 12-month bills and Rs750bn each from six- and three-month papers. An additional Rs475bn will be generated through one-month T-bills.
In addition to bank borrowing, the government has increasingly tapped the capital market. On August 17, it raised Rs119bn by auctioning one- to five-year sukuk through the PSX. Earlier, it raised Rs2tr through Sukuk and Rs1.4tr via PIBs at the PSX on December 5, 2024.
The borrowing spree highlights the country’s fiscal challenges. Domestic debt reached Rs53.46tr in May 2025, up Rs7.34tr from Rs46.12tr a year earlier. Meanwhile, debt servicing in FY25 is estimated at Rs9tr — about half of the total federal budget.
Analysts warn that the situation may worsen following recent floods, which have severely damaged infrastructure and agriculture. “The government will need to borrow more as revenue collection is likely to weaken due to flood-related disruptions,” said one analyst.
Published in Dawn, September 2nd, 2025
