Govt to raise Rs22 trillion in new loans for debt repayments, budget deficit funding

Pakistan’s Ministry of Finance has finalised its domestic borrowing plan for the fiscal year 2025-26, aiming to raise over Rs22 trillion in new loans, according to a news report. 

The primary purpose of this borrowing is to repay maturing debts and finance the federal budget deficit. Under the plan, the government targets retiring Rs15.628 trillion worth of old loans.

Following these repayments, the net domestic borrowing is expected to reach Rs6.395 trillion. The government plans to raise funds through various instruments, including Rs8.731 trillion via Treasury Bills and Rs8.595 trillion through Pakistan Investment Bonds.

Additionally, Rs3.312 trillion will be generated through Government Ijara Sukuk, and Rs1.385 trillion is anticipated from National Savings Schemes.

Sources revealed that the government is preparing for large-scale domestic financing to address the growing budget deficit for the current financial year.