Central govt debt surges to Rs77tr in October

December 04, 2025 (MLN): The total debt of the central government rose by 11.38% YoY to Rs76.98 trillion in October 2025, compared to Rs69.11tr in October 2024, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt rose by 0.49% MoM compared to Rs76.61tr in September 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 Rs53.98tr, comprising Rs45.49tr long-term debt, Rs8.41tr short-term debt and the remaining Rs79bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 14.28% YoY and on a sequential basis a growth of 1.03%

By the end of October 2025, the government’s long-term debt surged by 23.03% YoY to Rs45.49tr as compared to Rs36.97tr recorded in the same period a year ago, while rising 1.18% MoM.

Similarly, the short-term debt decreased by -17.43% YoY to Rs8.41tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs34.24tr, Up by 23.32% YoY and 0.79% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs8.29tr, down by 17.86% YoY, while up by 0.08% MoM.

Borrowing through Naya Pakistan Certificates has risen by 3.95% YoY to stand at Rs79bn in October 2025.

Comparison on a monthly metric shows that in October, the government borrowed 25.4% more through these certificates compared to Rs63bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs22.68tr came from long-term loans while Rs320bn came from short-term loans.

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