Central govt debt rises to Rs78tr in June

September 09, 2025 (MLN): The total debt of the central government went up by 13.02% YoY to Rs77.89 trillion in June 2025, compared to Rs68.91tr in June 2024, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt rose by 2.42% MoM compared to Rs76.05tr in May 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 Rs54.47tr, comprising Rs45.65tr long-term debt, Rs8.76tr short-term debt and the remaining Rs61.94bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 15.5% YoY and on a sequential basis a increase of 1.89%

By the end of June 2025, the government’s long-term debt increased by 23.95% YoY to Rs45.65tr as compared to Rs36.83tr recorded in the same period a year ago, while rising 0.86% MoM.

Similarly, the short-term debt decreased by -14.53% YoY to Rs8.76tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs35.01tr, up by 24.94% YoY, while down by 0.63% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs8.64tr, down by 15.04% YoY, while up by 7.5% MoM.

Borrowing through Naya Pakistan Certificates has decreased by 26.34% YoY to stand at Rs61.94bn in June 2025.

Comparison on a monthly metric shows that in June, the government borrowed 3.5% less through these certificates compared to Rs64.19bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs23.21tr came from long-term loans while Rs209.74bn came from short-term loans.

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