Govt debt climbs to record Rs76 trillion

Pakistan’s central government debt climbed to Rs76.05 trillion by May 2025, reflecting a year-on-year increase of 12.3% from Rs67.73 trillion in May 2024, according to recent data released by the State Bank of Pakistan (SBP).

On a month-to-month basis, the figure rose by 1.5% compared to Rs74.94 trillion recorded in April.

This upward trend is primarily driven by greater reliance on both domestic and external borrowing to bridge fiscal gaps and meet financing requirements.

A substantial portion of the overall debt—Rs53.46 trillion—came from domestic sources. Of this, long-term debt accounted for Rs45.26 trillion, short-term debt stood at Rs8.14 trillion, while Rs64.19 billion was mobilized through Naya Pakistan Certificates.

Compared to May 2024, domestic borrowing rose by nearly 16%, and also showed a 1.8% increase from April 2025. Long-term debt was the most notable contributor, jumping approximately 24% from Rs36.52 trillion a year earlier, and 2.6% month-on-month.

Pakistan Investment Bonds (PIBs) remained the leading long-term instrument, reaching Rs35.24 trillion—an increase of 27.2% from the previous year.

Read more: Pakistan to pay up to 8.5% interest rate on foreign debt, including IMF loans

Short-term debt, in contrast, declined by roughly 14.6% year-on-year. Market Treasury Bills—the main component of short-term borrowing—fell to Rs8.04 trillion, marking a 14.9% annual decline and a 2.4% drop from April levels.

Funds raised through Naya Pakistan Certificates also witnessed a 26.1% reduction year-on-year. However, on a monthly basis, they posted a 3.4% increase compared to April.

By the end of May, Pakistan’s external debt stood at Rs22.58 trillion. This included Rs22.38 trillion in long-term external loans and Rs201.15 billion in short-term obligations.