Govt Borrowing Crosses Rs4.9 Trillion Despite Higher Tax Revenues

Islamabad: The government borrowed more than Rs4.9 trillion from commercial banks between July 2025 and June 12, 2026, according to State Bank of Pakistan data. This is higher than the Rs3.7 trillion borrowed in the same period last year. Domestic debt has reached Rs58.1 trillion in April. Economists note that despite higher tax revenues, the government is still heavily reliant on borrowing, with nearly Rs8 trillion allocated for debt servicing in the FY27 budget. This is raising concerns about fiscal sustainability.

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