Pakistan, May 25 -- Pakistan's government borrowing from commercial banks surged to Rs2,700 billion by early May 2025, highlighting rising fiscal pressure in the second half of the financial year. This increase came despite the government repaying Rs1,500 billion in the first half of FY2025, thanks to strong liquidity from the State Bank's Rs2,700 billion profit.

According to the State Bank's latest data, total borrowing from July 1 to May 9 remained much lower compared to the previous year, when it stood at Rs6,076 billion during the same period. The borrowing trend this year initially reflected the IMF's strict fiscal deficit limits, aimed at continuing financial support from the global lender.

However, during the second half of the f...