Central govt debt rises by 7% YoY to Rs84tr in June

August 11, 2026 (MLN): The total debt of the central government increased by 7.39% YoY to Rs83.64 trillion in June 2026, compared to Rs77.89tr in June 2025, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt surged by 2.06% MoM compared to Rs81.96tr in May 2026.

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 Rs59.44tr, comprising Rs48.45tr long-term debt, Rs10.93tr short-term debt and the remaining Rs67bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 9.12% YoY and on a sequential basis a growth of 2.29%

By the end of June 2026, the government’s long-term debt surged by 6.12% YoY to Rs48.45tr as compared to Rs45.65tr recorded in the same period a year ago, while rising 2.42% MoM.

Similarly, the short-term debt rose by 24.8% YoY to Rs10.93tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs35.3tr, Up by 0.81% YoY and 1.87% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs10.8tr, Up by 24.97% YoY and 1.83% MoM.

Borrowing through Naya Pakistan Certificates has risen by 8.24% YoY to stand at Rs67bn in June 2026.

Comparison on a monthly metric shows that in June, the government borrowed 11.84% less through these certificates compared to Rs76bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.47tr came from long-term loans while Rs2.73tr came from short-term loans.

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