Pakistan’s central government debt has increased nearly to Rs. 80 trillion in January 2026, according to the latest report released by the State Bank of Pakistan (SBP). The rising debt highlights the country’s ongoing financial challenges and its continued reliance on borrowing to manage the budget deficit.
Debt Rises to Rs. 79.3 Trillion
Official figures show that the total central government debt reached about Rs. 79.3 trillion in January 2026. This marks a 1 percent increase compared to December 2025, when the debt stood at around Rs. 78.5 trillion.
The latest numbers also show a significant increase on a yearly basis. In January 2025, the central government debt was around Rs. 72.1 trillion, means the debt has grown by almost 10 percent year-on-year.
Domestic Debt Makes Up the Largest Share
Most of the government’s debt comes from domestic borrowing, which includes loans taken from local banks, financial institutions, and investors.
According to SBP data, domestic debt stood at about Rs. 55.98 trillion, which makes up the largest portion of the total central government debt. This includes:
- Long-term domestic debt: about Rs. 47.12 trillion
- Short-term debt: around Rs. 8.78 trillion
- Borrowing through Naya Pakistan Certificates: about Rs. 72 billion
Domestic borrowing is often used by the government to finance spending and cover financial deficits when revenues are not enough.
Reasons Behind the debt Increase
Rise in government debt is due to:
- Budget deficits caused by higher spending than revenue
- Borrowing to repay previous loans
- Economic pressures and financial commitments
- Development and infrastructure exenses
Pakistan has relied on both domestic and foreign borrowing in recent years to support economic stability and meet financial obligations.
