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Pakistan’s Central Government Debt Hits Rs79.32 Trillion in January 2026
Pakistan’s central government debt rises to Rs79.32tr in Jan 2026, up 10% YoY, driven mainly by domestic borrowing. Pakistan Investment Bonds & long-term domestic debt dominate liabilities.
ND
by News Desk
2026-03-06
Pakistan’s Central Government Debt Hits Rs79.32 Trillion in January 2026

Pakistan’s total central government debt rose to Rs79.32 trillion in January 2026, reflecting a 10 percent year-on-year increase as government borrowing continues to expand, according to data from the State Bank of Pakistan.

The total debt was Rs72.12tr in January 2025, meaning the federal government borrowed an additional Rs7.2tr over the past year. Month-on-month, central government debt grew by 1 percent, driven primarily by domestic borrowing, which continues to constitute the bulk of liabilities.

Domestic Debt Dominates
Central government domestic debt reached Rs55.98tr in January 2026, up from Rs50.24tr in January 2025, accounting for roughly 71% of the total debt. Within domestic debt, long-term instruments remained the dominant component, increasing from Rs41.83tr to Rs47.12tr over the year.

Among permanent debt instruments, Pakistan Investment Bonds remained the largest contributor at Rs35.27tr, up from Rs31.77tr a year earlier. Government of Pakistan Ijara Sukuk also rose from Rs5.84tr to Rs6.75tr, while Bai-Muajjal Sukuk saw significant growth from Rs65bn in January 2025 to Rs632bn by December 2025.

The government’s unfunded debt, including national savings schemes, edged higher to Rs3.18tr, up from Rs2.9tr in January 2025, reflecting continued participation in savings instruments. Short-term domestic borrowing also remained elevated at Rs8.78tr, largely through Market Treasury Bills, up from Rs8.26tr in January 2025.

External Debt Remains Stable
In contrast, central government external debt remained relatively stable at Rs23.34tr, compared to Rs21.88tr a year earlier. Long-term external debt accounted for Rs22.99tr, while short-term external liabilities increased modestly to Rs345bn. Topline Research noted that external debt rose 6.7% YoY and 0.8% MoM in January 2026, with total external debt at $82.5bn as of June 2025.

Overall Debt Expansion
While Pakistan’s debt stock continues to expand, most of the increase is being absorbed domestically, limiting reliance on foreign borrowing. Analysts say sustained domestic borrowing, especially in long-term instruments, remains a key tool for managing fiscal needs amid ongoing economic pressures.
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