Central govt debt rises by 10% YoY in Jan

March 05, 2026 (MLN): The total debt of the central government went up by 9.98% YoY to Rs79.32 trillion in January 2026, compared to Rs72.12tr in January 2025, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt rose by 1.01% MoM compared to Rs78.53tr in December 2025.

The year-on-year increase in debt burden is primarily attributed to borrowing from domestic and foreign sources to cover the fiscal deficit.

As per details made available by SBP, the larger portion of the debt was domestic and stood at Rs55.98tr, comprising Rs47.12tr long-term debt, Rs8.78tr short-term debt and the remaining Rs72bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect an increase of 11.41% YoY and on a sequential basis a growth of 1.11%

By the end of January 2026, the government’s long-term debt increased by 12.66% YoY to Rs47.12tr as compared to Rs41.83tr recorded in the same period a year ago, while rising 1.21% MoM.

Similarly, the short-term debt increased by 5.17% YoY to Rs8.78tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs35.27tr, Up by 11.01% YoY and 0.98% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs8.66tr, Up by 4.83% YoY and 0.55% MoM.

Borrowing through Naya Pakistan Certificates has increased by 7.46% YoY to stand at Rs72bn in January 2026.

Comparison on a monthly metric shows that in January, the government borrowed 16.13% more through these certificates compared to Rs62bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs23tr came from long-term loans while Rs345bn came from short-term loans.

Copyright Mettis Link News