State Bank of Pakistan data reveals a surging reliance on domestic borrowing and a significant month-on-month spike in external liabilities.

KARACHI: Pakistan’s total central government debt climbed to nearly Rs82 trillion by the end of April 2026, registering an increase of 9.33 per cent compared with the same month a year earlier, according to the latest data released by the State Bank of Pakistan (SBP).

The SBP data showed that the central government’s total debt rose to Rs81.93 trillion in April 2026 from Rs74.94 trillion recorded in April 2025. This reflects a year-on-year increase of approximately Rs6.99 trillion.

Domestic Debt Remains Primary Borrowing Source

A breakdown of the figures revealed that domestic debt remained the largest component of the government’s borrowing portfolio. Central government domestic debt increased to Rs58.09 trillion by the end of April 2026, compared with Rs52.52 trillion a year earlier. This shift indicates a continued reliance on local borrowing to finance fiscal requirements.

Within the domestic debt category, long-term obligations stood at Rs47.47 trillion, while short-term debt amounted to Rs10.56 trillion. Pakistan Investment Bonds (PIBs) and Government of Pakistan Ijara Sukuk continued to account for a significant share of long-term domestic borrowing.

External Debt and Monthly Shifts

The SBP figures further showed that central government external debt reached Rs23.84 trillion in April 2026, up from Rs22.41 trillion in April 2025.

Long-term external debt was recorded at Rs19.73 trillion. Meanwhile, short-term external debt stood at Rs4.11 trillion following a reclassification of a portion of long-term debt into the short-term category, effective from February 2026.

On a month-on-month basis, total government debt increased from Rs80.52 trillion in March 2026 to Rs81.93 trillion in April 2026, reflecting additional borrowing during the period. Domestic debt rose by Rs523 billion, while external debt increased by Rs882 billion over the month.

Key Debt Breakdown (April 2025 vs April 2026)

Debt Category	April 2025 (Trillion Rs)	April 2026 (Trillion Rs)	YoY Change (%)
Domestic Debt	52.52	58.09	+10.6%
External Debt	22.41	23.84	+6.3%
Total Debt	74.94	81.93	+9.33%

Analysts Call for Fiscal Consolidation

Economic analysts note that the persistent rise in public debt underscores the government’s ongoing financing needs amid budget deficits, debt servicing obligations, and development expenditures.

The growing debt stock also highlights the importance of fiscal consolidation measures. Experts suggest these steps are now critical for containing borrowing requirements and ensuring long-term debt sustainability for Pakistan’s economy.