Karachi: Pakistan’s total public debt surged by 10% over the past year, reaching Rs79.32 trillion by January 31, 2026, according to data released by the State Bank of Pakistan (SBP) on Thursday. The increase reflects rising domestic and external borrowing amid ongoing fiscal and economic challenges.
The SBP data shows that domestic debt climbed to Rs55.98 trillion, up from Rs50.24 trillion a year ago, while external debt increased to Rs23.34 trillion, compared with Rs21.88 trillion previously.
Among domestic debt components, long-term loans rose sharply to Rs47.12 trillion from Rs41.82 trillion last year. The government raised Rs42.66 trillion through bonds, compared with Rs37.68 trillion in the previous year, and mobilized Rs425 billion via prize bonds, up from Rs397 billion.
Short-term borrowing, including Market Treasury Bills (MTBs), also increased to Rs8.78 trillion by January 31, 2026, compared to Rs8.35 trillion a year earlier. Analysts attribute the rising debt levels to continued fiscal deficits, financing of development projects, and management of budgetary obligations.
Economists caution that while borrowing is essential to fund government spending, the rapid growth in debt could increase debt servicing pressures in the future. They recommend careful fiscal management, enhanced revenue collection, and efficient allocation of borrowed funds to ensure debt sustainability.
The SBP’s data underscores the need for a balanced approach to borrowing, combining domestic and external sources while maintaining economic stability and investor confidence.