Pakistan’s federal government’s direct debt rose to Rs83.6 trillion by June 2026, up from around Rs77.8 trillion at the end of the previous fiscal year, according to data released by the State Bank of Pakistan.
The figures show that the government’s direct debt increased by approximately Rs5.8 trillion, or 7.3%, in one year.
Compared with June 2022, federal direct debt has increased by around Rs35.8 trillion, representing an increase of nearly 75% over four years.
During the year to June 2026, the government’s domestic debt rose from Rs54.5 trillion to Rs59.5 trillion, an increase of Rs5 trillion or 9.1%. External debt increased from Rs23.4 trillion to Rs24.2 trillion, adding another Rs783 billion.
The figures do not include certain loans obtained from the IMF and some bilateral lenders that are reflected on the central bank’s balance sheet. A more comprehensive picture of Pakistan’s total public debt is expected once the State Bank releases its complete public-debt figures.
The rising debt comes despite a significant increase in government revenues over the past four years. However, higher debt-servicing costs and continued government expenditure have continued to put pressure on the country’s fiscal position.
The report also highlights concerns over the growing share of short-term borrowing, which can increase refinancing risks and the government’s overall financing requirements.
