Central govt debt rises by 9.4% YoY in Feb 2026

April 08, 2026 (MLN): The total debt of the central government went up by 9.37% YoY to Rs79.88 trillion in February 2026, compared to Rs73.04tr in February 2025, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt increased by 0.7% MoM compared to Rs79.33tr in January 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 Rs56.68tr, comprising Rs47.48tr long-term debt, Rs9.13tr short-term debt and the remaining Rs67bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect an increase of 11.09% YoY and on a sequential basis a growth of 1.24%

By the end of February 2026, the government’s long-term debt rose by 11.14% YoY to Rs47.48tr as compared to Rs42.72tr recorded in the same period a year ago, while rising 0.75% MoM.

Similarly, the short-term debt surged by 10.95% YoY to Rs9.13tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs35.36tr, Up by 8.61% YoY and 0.24% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs9.01tr, Up by 10.72% YoY and 4.04% MoM.

Borrowing through Naya Pakistan Certificates has declined by 4.29% YoY to stand at Rs67bn in February 2026.

Comparison on a monthly metric shows that in February, the government borrowed 6.94% less through these certificates compared to Rs72bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs19.28tr came from long-term loans while Rs3.92tr came from short-term loans.

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