Pakistan borrowed Rs144 billion in November, according to data from the Economic Affairs Division. This shows an increase compared to the same period last year. During the previous fiscal year, the government borrowed Rs741 billion over five months, highlighting a year-on-year rise of over Rs117 billion.
The documents reveal that Pakistan borrowed an additional $40 million in November compared with October 2025. Of the total inflows, $314.5 million came from bilateral and multilateral agreements, while $196.9 million was raised through New Pakistan Certificates.
Monthly data shows that Pakistan borrowed Rs198 billion in July, Rs192 billion in August, Rs124 billion in September, and Rs133 billion in October. These figures indicate a consistent borrowing trend to manage fiscal and economic needs.
In a major move to address the persistent circular debt in the power sector, the federal government signed a Rs1.275 trillion financing agreement with 18 commercial banks in September 2025. The agreement was signed at the Prime Minister’s Office in Islamabad, with Prime Minister Shehbaz Sharif attending virtually from New York during the UN General Assembly session.
The financing package carries an interest rate of 3-month KIBOR minus 0.9%, offering relief in debt servicing costs. Officials said the arrangement is aimed at stabilizing the power sector and supporting economic stability.
Overall, the data reflects Pakistan borrowed heavily in the past months to manage fiscal pressures, cover circular debt, and maintain liquidity in key sectors. Analysts note that continued borrowing will need careful management to ensure macroeconomic stability and avoid long-term debt challenges.
The government’s borrowing strategy combines multilateral loans, bilateral assistance, and domestic debt instruments, balancing the need for funds while trying to reduce interest burdens.
This record underscores the growing fiscal demands and highlights the government’s efforts to secure funding for essential infrastructure and power sector stabilization.
In other news read more about: World Bank to lend Pakistan $2bn for fiscal growth
