Pakistan’s gross government domestic debt and liabilities have surpassed the Rs58 trillion mark, highlighting the country’s continued dependence on domestic borrowing to meet its fiscal obligations and finance budgetary expenditures.
According to the latest data released by the State Bank of Pakistan (SBP), the government’s domestic debt and liabilities increased to Rs58,089 billion in April 2026, compared to Rs57,566 billion in March 2026. This represents a 0.91% month-on-month increase. On an annual basis, domestic debt expanded by approximately 11%, rising from Rs52,523 billion recorded in April 2025.
The central bank’s figures indicate that the growth was largely driven by increases in both floating debt and long-term financing instruments, reflecting the government’s strategy of utilizing a combination of short-term liquidity measures and medium-to-long-term borrowing channels to address fiscal financing needs.
Permanent and Floating Debt Trends
Permanent debt stood at Rs43,845 billion in April 2026. Although slightly lower than the Rs44,320 billion reported in March, it remained significantly higher than the Rs41,160 billion recorded a year earlier.
Federal government bonds remained the largest component of permanent debt, amounting to Rs42,938 billion, compared with Rs40,279 billion in April 2025.
Within this category, Pakistan Investment Bonds (PIBs) were reported at Rs35,035 billion, while the government’s reliance on GoP Ijarah Sukuk continued to expand. Short-term Sukuk rose to Rs634 billion from Rs478 billion a year earlier, whereas long-term Sukuk increased substantially to Rs6.64 trillion, up from Rs5.40 trillion.
Floating debt experienced one of the sharpest increases, reaching Rs10.56 trillion in April 2026, compared with Rs9.58 trillion in March and Rs8.32 trillion during the same period last year.
Market Treasury Bills (MTBs) remained the primary contributor to floating debt, climbing to Rs10.43 trillion from Rs8.23 trillion in April 2025. The increase suggests continued reliance on short-term borrowing instruments to manage cash requirements and bridge financing gaps.
Other Liabilities and Total Debt Position
Unfunded debt also edged higher to Rs3,236 billion, with National Savings Schemes accounting for the majority at Rs3,171 billion.
Meanwhile, foreign currency loans classified under domestic debt surged to Rs391 billion, a sharp increase from only Rs12 billion recorded in April 2025.
Pakistan’s external liabilities stood at Rs23,841 billion, compared with Rs22,959 billion a month earlier.
As a result, the country’s central government cumulative debt reached Rs81,930 billion, increasing from Rs80,524 billion in March 2026 and Rs74,936 billion in April 2025. This reflects a 1.7% monthly increase and a 9.33% rise on a yearly basis.
Including associated liabilities and adjustments, gross domestic debt and liabilities climbed further to Rs58,215 billion, emphasizing the continued upward trajectory of Pakistan’s debt burden.
Analysts Explain the Increase
Economists believe the rise in government debt is primarily linked to budget financing requirements.
According to Sana Tawfik, economist at Arif Habib Limited, insufficient tax revenues and persistent expenditure pressures forced the government to increase borrowing from the domestic banking sector.
She noted that the Federal Board of Revenue (FBR) faced an estimated Rs680 billion tax revenue shortfall during the first ten months of FY2025-26, contributing significantly to additional borrowing requirements.
Meanwhile, Mohammed Awais Ashraf, Director Research at AKD Securities, observed that investors have increasingly shifted towards short-term investment instruments due to uncertainty surrounding the future interest rate outlook amid ongoing geopolitical tensions, particularly the U.S.-Iran conflict.
Despite the continued increase in debt, analysts pointed out that the pace of growth has slowed compared to previous years due to fiscal consolidation measures, prudent spending practices, revenue improvements, and tighter monetary policies implemented by the government and the central bank.
The latest figures underline Pakistan’s ongoing challenge of balancing economic growth, fiscal discipline, and debt sustainability while meeting rising financing needs.
