- Govt debt up Rs641bn to Rs78.5tr by December.
- Govt debt edges up 0.82% in 1HFY26, SBP knowledge reveals.
- Govt debt climbs to Rs78.5tr in first half of FY26.
KARACHI: Authorities debt rose by Rs641 billion, or 0.82%, by end-December, highlighting continued borrowing wants, largely from home sources, and the pressure on fiscal consolidation, The Information reported.
Complete authorities debt stood at Rs78.5 trillion as of December 2025, up from Rs77.8 trillion on the finish of June, based on State Financial institution of Pakistan (SBP) knowledge launched on Wednesday. The inventory was up 1.3% month-on-month and 9.6% year-on-year.
The rise got here regardless of a funds surplus of Rs542 billion, or 0.4% of GDP, recorded in July–December FY26, in contrast with a deficit of Rs1.5 trillion, or 1.3% of GDP, in the identical interval final 12 months.
The rise in central authorities debt displays persistent fiscal wants and rollover of present obligations, stated Saad Hanif, head of analysis at Ismail Iqbal Securities. “The rise stays primarily domestic-debt pushed, notably by way of PIBs, sukuk and Treasury payments, indicating the federal government’s ongoing reliance on native banking liquidity amid comparatively tight exterior financing situations,” Hanif stated.
“Exterior debt progress stayed comparatively contained, suggesting steady FX borrowing however persistent strain on home curiosity prices,” he added. “General, whereas the MoM tempo seems manageable, the elevated debt inventory continues to spotlight fiscal consolidation challenges and is delicate to interest-rate actions going ahead.”
In response to central financial institution knowledge, the home debt reached Rs55.4 trillion on the finish of December, representing a rise of 1.63%, or Rs891 billion, in comparison with June. When in comparison with November, this debt rose by 1.4% and elevated by 11% in comparison with a 12 months earlier.
When it comes to exterior debt, it amounted to Rs23.1 trillion, which displays a lower of 1%, or Rs251 billion, within the first six months of the fiscal 12 months 2026. Nonetheless, the exterior debt rose by 1.1% in comparison with the earlier month and elevated by 6.4% in comparison with December final 12 months.
The nation’s gross public debt elevated to Rs81.3 trillion by the tip of the primary half of FY26, up from Rs80.5 trillion on the finish of June. As of the tip of December, Pakistan’s whole debt and liabilities rose to Rs95.5 trillion in comparison with Rs87.9 trillion by the tip of December 2024.
Regardless of these will increase, whole debt and liabilities servicing fell to Rs5.2 trillion in July-December FY26, down from Rs6.9 trillion throughout the identical interval final 12 months. Curiosity funds on the debt amounted to Rs3.7 trillion in July to December FY26, in comparison with Rs5.5 trillion in the identical interval final 12 months.
The federal government asserts that its fiscal place is enhancing, having retired Rs3.65 trillion in home debt forward of schedule since late 2024, amid a shift in the direction of early repayments and a discount in refinancing dangers. Nonetheless, gross public debt surged to 70.7% of GDP within the fiscal 12 months 2025, exceeding the utmost allowable debt restrict set by the Fiscal Accountability and Debt Limitation Act.
These elevated and unsustainable debt ranges eat half of the annual funds, leaving little room for growth and social spending. This example imposes a further tax burden on atypical residents, who’re already going through monetary pressure.
In greenback phrases, Pakistan’s whole excellent exterior debt and liabilities elevated to $138 billion as of December 31, 2025, up from $136 billion on the finish of June. Within the second quarter of FY26, the nation’s exterior debt servicing funds totalled $4.1 billion, a rise from $3.5 billion within the earlier quarter.
This quantity included $1.3 billion paid in curiosity, which is up from $1.2 billion within the first quarter of this fiscal 12 months. Moreover, $2.7 billion was allotted for principal reimbursement in comparison with $2.3 billion within the July-September FY26 interval.
