Central govt debt rises to Rs77tr in August

October 06, 2025 (MLN): The total debt of the central government increased by 10.08% YoY to Rs77.46 trillion in August 2025, compared to Rs70.36 trillion in August 2024, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt fell by 1% MoM compared to Rs78.24tr in July 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 Rs54.07tr, comprising Rs45.35tr long-term debt, Rs8.65tr short-term debt and the remaining Rs65.76bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect an increase of 11.86% YoY and on a sequential basis a downturn of 1.66%

By the end of August 2025, the government’s long-term debt surged by 21.6% YoY to Rs45.35tr as compared to Rs37.3tr recorded in the same period a year ago, while decreasing 1.81% MoM.

Similarly, the short-term debt decreased by -21.05% YoY to Rs8.65tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs34.55tr, up by 21.71% YoY, while down by 2.85% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs8.54tr, Down by 21.5% YoY and 0.86% MoM.

Borrowing through Naya Pakistan Certificates has decreased by 17.8% YoY to stand at Rs65.76bn in August 2025.

Comparison on a monthly metric shows that in August, the government borrowed 7.96% less through these certificates compared to Rs71.44bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs23.09tr came from long-term loans while Rs292.45bn came from short-term loans.

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