Central govt debt surges by 10% YoY to Rs76tr in September

November 14, 2025 (MLN): The total debt of the central government increased by 10.11% YoY to Rs76.61 trillion in September 2025, compared to Rs69.57tr in September 2024, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt fell by 1.1% MoM compared to Rs77.46tr in August 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 Rs53.42tr, comprising Rs44.96tr long-term debt, Rs8.4tr short-term debt and the remaining Rs63bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 12.39% YoY and on a sequential basis a decline of 1.2%

By the end of September 2025, the government’s long-term debt surged by 24.1% YoY to Rs44.96tr as compared to Rs36.23tr recorded in the same period a year ago, while declining 0.86% MoM.

Similarly, the short-term debt decreased by -25.15% YoY to Rs8.4tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs33.97tr, up by 25.22% YoY, while down by 1.69% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs8.29tr, Down by 25.61% YoY and 2.97% MoM.

Borrowing through Naya Pakistan Certificates has decreased by 25.88% YoY to stand at Rs63bn in September 2025.

Comparison on a monthly metric shows that in September, the government borrowed 4.19% less through these certificates compared to Rs65.76bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs22.91tr came from long-term loans while Rs268bn came from short-term loans.

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