Think tank urges sustained tight monetary stance as inflation, liquidity stress and structural issues challenge SBP policy effectiveness
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Govt estimates over 40% decline in SBP profit during FY2026-27
Lower State Bank profits expected to cut federal non-tax revenue by nearly Rs1 trillion in the upcoming fiscal year
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SBP Reserves Edge Up to $17.22 Billion as Pakistan’s Forex Holdings Increase
Pakistan’s total liquid foreign exchange reserves climb to $22.74 billion, supported by gains in both central bank and commercial bank holdings.
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Bank Alfalah receives SBP approval for Rs20 billion TFC issuance
Funds to be raised through Tier 2 capital instruments under Basel III framework to strengthen the bank’s capital base.
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Record Remittances Push Pakistan’s Current Account Into Surplus in May 2026
Current account posts $459 million surplus as remittances hit all-time high
ISLAMABAD, June 17, 2026 — Pakistan’s current account swung to a surplus of $459 million in May 2026, reversing a deficit of $276 million recorded in April, as record-high remittances and lower imports strengthened the country’s external position.
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SBP simplifies rules for conversion to Islamic banking branches
Central bank shortens notification timelines and simplifies account conversion procedures to facilitate Islamic banking expansion.
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SBP keeps benchmark policy rate unchanged at 11.5% amid easing geopolitical tensions
State Bank of Pakistan maintains stance at 11.5% amid easing tensions, stable reserves, and persistent inflation pressures.
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SBP restricts Islamic banking loan to parent bank
Central bank bars Islamic banking institutions from placing funds with conventional parent entities through Qard or subsidised financing.
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SBP unveils first-ever research agenda for 2026-2029
Central bank outlines priorities on inflation, financial sector development and structural reforms to strengthen policymaking
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Pakistan’s total debt nears Rs82 trillion by April 2026, up 9.3% year-on-year
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.