Islamabad: The government plans to raise about PKR 4.8 trillion from banks and capital markets between September and November to meet financing requirements, as rising fiscal pressures and flood-related disruptions weigh heavily on the economy.
According to the State Bank of Pakistan (SBP), the target includes PKR 2.875tr through Treasury Bills (T-bills) and PKR 2tr via Pakistan Investment Bonds (PIBs). Of the PIB amount, PKR 1.2tr will be mobilised through fixed-rate bonds and PKR 750bn through floating-rate instruments.
The T-bill auction schedule shows that the government aims to raise PKR 900bn from 12-month papers, PKR 750bn each from six- and three-month papers, and PKR 475bn from one-month bills.
Beyond conventional borrowing, the government has increasingly turned to the capital market. On August 17, it raised PKR 119bn through sukuk of one- to five-year tenures at the Pakistan Stock Exchange (PSX). Earlier, PKR 2tr was mobilised through sukuk and PKR 1.4tr through PIBs at the PSX on December 5, 2024.
The heavy borrowing underscores the growing fiscal stress. Domestic debt climbed to PKR 53.46tr in May 2025, up PKR 7.34tr from PKR 46.12tr a year earlier. Debt servicing alone in FY25 is estimated at PKR 9tr — nearly half of the federal budget.
Analysts warn that recent floods, which caused extensive damage to infrastructure and agriculture, could further erode revenue collection, forcing the government into even higher borrowing. “The fiscal outlook is worsening, and the reliance on domestic borrowing is likely to deepen if recovery from floods is slower than expected,” one analyst said.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
