Central govt debt rises by 9% YoY in March 2026

May 13, 2026 (MLN): The total debt of the central government went up by 9.28% YoY to Rs80.52 trillion in March 2026, compared to Rs73.69tr in March 2025, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt increased by 0.8% MoM compared to Rs79.88tr in February 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 Rs57.57tr, comprising Rs47.92tr long-term debt, Rs9.58tr short-term debt and the remaining Rs60bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect an increase of 11.74% YoY and on a sequential basis a increase of 1.56%

By the end of March 2026, the government’s long-term debt rose by 9.93% YoY to Rs47.92tr as compared to Rs43.6tr recorded in the same period a year ago, while rising 0.93% MoM.

Similarly, the short-term debt increased by 21.92% YoY to Rs9.58tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs35.68tr, Up by 6.12% YoY and 0.89% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs9.46tr, Up by 21.82% YoY and 5.01% MoM.

Borrowing through Naya Pakistan Certificates has declined by 4.76% YoY to stand at Rs60bn in March 2026.

Comparison on a monthly metric shows that in March, the government borrowed 10.45% less through these certificates compared to Rs67bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs19.09tr came from long-term loans while Rs3.87tr came from short-term loans.

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