Central govt debt rises by 8% YoY to Rs82tr in May

July 06, 2026 (MLN): The total debt of the central government went up by 7.76% YoY to Rs81.95 trillion in May 2026, compared to Rs76.05tr in May 2025, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt rose by 0.02% MoM compared to Rs81.93tr in April 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 Rs58.11tr, comprising Rs47.3tr long-term debt, Rs10.73tr short-term debt and the remaining Rs76bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 8.69% YoY and on a sequential basis a increase of 0.03%

By the end of May 2026, the government’s long-term debt increased by 4.49% YoY to Rs47.3tr as compared to Rs45.26tr recorded in the same period a year ago, while decreasing 0.37% MoM.

Conversely, the short-term debt increased by 31.98% YoY to Rs10.73tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs34.65tr, Down by 1.68% YoY and 1.11% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs10.61tr, Up by 32.03% YoY and 1.7% MoM.

Borrowing through Naya Pakistan Certificates has risen by 18.38% YoY to stand at Rs76bn in May 2026.

Comparison on a monthly metric shows that in May, the government borrowed 26.67% more through these certificates compared to Rs60bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.15tr came from long-term loans while Rs2.69tr came from short-term loans.

Copyright Mettis Link News