Central govt debt surges over 6% YoY in July

September 07, 2026 (MLN): The total debt of the central government increased by 6.58% YoY to Rs83.38 trillion in July 2026, compared to Rs78.24tr in July 2025, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt fell by 0.31% MoM compared to Rs83.64tr in June 2026.

As per details made available by SBP, the larger portion of the debt was domestic and stood at Rs59.27tr, comprising Rs48.38tr long-term debt, Rs10.82tr short-term debt and the remaining Rs82bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 7.79% YoY and on a sequential basis a downturn of 0.28%

By the end of July 2026, the government’s long-term debt surged by 4.73% YoY to Rs48.38tr as compared to Rs46.19tr recorded in the same period a year ago, while decreasing 0.14% MoM.

Similarly, the short-term debt rose by 23.95% YoY to Rs10.82tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs34.99tr, Down by 1.63% YoY and 0.89% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs10.69tr, up by 24.16% YoY, while down by 1.02% MoM.

Borrowing through Naya Pakistan Certificates has increased by 14.85% YoY to stand at Rs82bn in July 2026.

Comparison on a monthly metric shows that in July, the government borrowed 22.39% more through these certificates compared to Rs67bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.52tr came from long-term loans while Rs2.59tr came from short-term loans.

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