Pakistan’s federal government debt has ballooned by Rs18,832 billion over a 28-month stretch, pushing the total stock to Rs83,642 billion by June 2026, according to State Bank of Pakistan documents reviewed by Dunya News. The sharp rise reflects heavy reliance on domestic borrowing alongside a steady climb in external obligations.
The data shows the debt burden grew at an average pace of more than Rs22.40 billion per day between March 2024 and June 2026. Domestic debt accounted for the bulk of the increase, surging by Rs16,766 billion, while external debt rose by Rs2,066 billion during the same window.
Domestic Borrowing Drives the Increase
By February 2024—the final month of the caretaker government—federal debt stood at Rs64,810 billion. Over the next 28 months, the total climbed to Rs83,642 billion. The central government’s domestic debt alone jumped from Rs42,675 billion in February 2024 to Rs59,441 billion by June 2026.
External debt also moved higher, rising from Rs22,134 billion to Rs24,201 billion over the same period. While the external increase was smaller in absolute terms, it underscores persistent pressure from foreign obligations and currency movements.
Key Figures at a Glance
- Total federal debt: Rs83,642 billion by June 2026
- Increase over 28 months: Rs18,832 billion
- Average daily debt rise: Rs22.40 billion
- Domestic debt: Rs59,441 billion by June 2026
- External debt: Rs24,201 billion by June 2026
The figures highlight a continuing fiscal strain as the government leans heavily on domestic markets to finance its borrowing needs. With debt servicing consuming a growing share of revenue, the trajectory raises fresh concerns about fiscal sustainability and the space available for development spending.
State Bank documents indicate that the pace of accumulation remained elevated throughout the period, reflecting persistent budget deficits and higher borrowing costs. The shift toward domestic debt also exposes the government to interest rate volatility, which has been a recurring challenge for Pakistan’s fiscal management.
As the debt stock crosses the Rs83 trillion mark, policymakers face mounting pressure to widen the tax base, curb current expenditure, and reduce the reliance on borrowing that has defined the country’s recent fiscal path.
