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KARACHI: The fiscal deficit narrowed to 0.7 per cent of GDP during July-March FY26, compared with 2.6pc last year, according to the Economic Survey.

The government sector borrowing for budgetary support increased by Rs850.6 billion as compared to Rs1,320.9bn during the same period last year.

The government has retired Rs1939.3bn to the State Bank, compared with the retirement of Rs287.4bn during the corresponding period last year.

At the same time, the government borrowed Rs2,789.9bn from scheduled banks, compared to Rs1,608.3bn during last year.