Central govt debt surges by 7% YoY in August

October 06, 2026 (MLN): The total debt of the central government went up by 7.09% YoY to Rs82.95 trillion in August 2026, compared to Rs77.46tr in August 2025, the data released by the State Bank of Pakistan (SBP) showed.

Moreover, on a sequential basis, the central government debt decreased by 0.52% MoM compared to Rs83.38tr in July 2026.

As per details made available by SBP, the larger portion of the debt was domestic and stood at Rs58.76tr, comprising Rs48.11tr long-term debt, Rs10.56tr short-term debt and the remaining Rs88bn through Naya Pakistan Certificates.

The figures reported by the central bank for the domestic debt reflect a growth of 8.66% YoY and on a sequential basis a downturn of 0.87%

By the end of August 2026, the government’s long-term debt rose by 6.06% YoY to Rs48.11tr as compared to Rs45.36tr recorded in the same period a year ago, while decreasing 0.56% MoM.

Similarly, the short-term debt surged by 22.08% YoY to Rs10.56tr in the review month.

Within the long-term domestic debt, the Pakistan Investment Bonds (PIBs) accounted for the majority proportion and stood at Rs34.32tr, Down by 0.67% YoY and 1.9% MoM.

Meanwhile, in the short-term domestic debt, Market Treasury Bills (MTBs) were the dominant source of borrowing, amounting to Rs10.43tr, up by 22.16% YoY, while down by 2.45% MoM.

Borrowing through Naya Pakistan Certificates has increased by 33.74% YoY to stand at Rs88bn in August 2026.

Comparison on a monthly metric shows that in August, the government borrowed 7.32% more through these certificates compared to Rs82bn in the previous month.

A breakup of the central government's external debt shows that nearly Rs21.65tr came from long-term loans while Rs2.55tr came from short-term loans.

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