KARACHI: The government’s borrowing from banks in the first half of FY26 has marked a sharp reversal from last year’s pattern, with Rs672 billion raised against net debt retirement during the same period of FY25.

Latest data from the State Bank of Pakistan (SBP) showed that, as the first half of FY26 draws to a close, the government borrowing remains limited to Rs672bn, compared with debt retirement of Rs1.7 trillion in the corresponding period of the previous fiscal year.

Bankers expect heavy borrowing in the second half of the current fiscal year as the government faces liquidity constraints due to revenue shortfalls, which they say remain below........

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