Pakistan’s debt burden has increased further as the country’s total debt reached Rs 99.6 trillion by June 2026. Fresh figures show an increase of around Rs 5.2 trillion within one year.
The State Bank of Pakistan released the latest figures covering the country’s debt position. The data highlights another significant rise in Pakistan’s total debt during the latest fiscal period.
According to the central bank, the country recorded total debt of Rs 94.387 trillion on June 30, 2025. However, the figure climbed to approximately Rs 99.6 trillion by June 2026.
The increase means Pakistan added more than Rs 5 trillion to its overall debt burden within a year. Consequently, debt management remains one of the most important challenges for the country’s economic policymakers.
The latest data also provides details about domestic borrowing. According to the SBP figures, the federal government’s domestic debt reached Rs 59.441 trillion by the end of the reported period.
Meanwhile, external borrowing continues to account for a significant share of Pakistan’s total debt. The country’s external debt stood at Rs 36.19 trillion by June 2026, according to the central bank data.
Domestic borrowing allows the government to raise money from sources within Pakistan. These sources can include banks, financial institutions, and different government debt instruments.
External debt, however, creates different financial pressures because Pakistan needs foreign currency to meet many repayment obligations. Therefore, changes in exchange rates can also influence the rupee value of foreign liabilities.
The latest figures come as Pakistan continues to manage large financing requirements. The government needs funds for debt repayments, public spending and other financial obligations during every fiscal year.
At the same time, servicing existing loans consumes a major share of available financial resources. This situation can limit the government’s flexibility when allocating funds to other economic and development priorities.
The SBP data shows that Pakistan made total debt payments worth Rs 11.966 trillion during fiscal year 2026. These payments demonstrate the substantial financial resources that the country directs toward its existing obligations.
Moreover, Pakistan paid Rs 4.466 trillion toward the principal amount of external debt during the fiscal year. Principal repayments reduce outstanding obligations but also create major financing requirements for the government.
The cost of servicing Pakistan’s total debt also remained significant during FY2026. According to the reported figures, the country spent Rs 7.266 trillion on interest payments during the year.
However, the interest bill showed a notable decline compared with the previous fiscal year. Pakistan recorded debt interest payments of Rs 9.466 trillion during fiscal year 2025.
This difference indicates a reduction of around Rs 2.2 trillion in annual interest payments based on the reported figures. Nevertheless, the overall interest burden remains extremely large compared with many other areas of government expenditure.
Rising debt can create several challenges for an economy. For example, high repayment requirements can reduce the amount of public money available for infrastructure, education, healthcare and development projects.
Furthermore, governments often need fresh borrowing when revenue cannot cover expenditures and existing financial obligations. This cycle can increase total liabilities unless stronger revenues and fiscal discipline reduce financing needs.
The increase in Pakistan’s total debt will therefore remain an important issue for economic policymakers. Managing borrowing while maintaining economic growth requires careful decisions on government spending, taxation and debt restructuring.
Domestic debt represents the largest component in the latest figures. With federal government domestic borrowing reaching Rs 59.441 trillion, local financing continues to play a central role in meeting government requirements.
However, policymakers also need to manage external liabilities carefully. Foreign debt repayments can place pressure on foreign exchange reserves, especially when the country faces large international payment requirements.
Pakistan’s ability to increase exports and attract stable foreign investment can therefore influence its external debt position. Stronger foreign currency inflows can provide greater support for repayments and overall balance-of-payments management.
Meanwhile, reducing unnecessary expenditure and improving tax collection could help control future borrowing requirements. Higher government revenue can reduce dependence on additional loans to finance routine spending.
The latest Pakistan Total Debt figures also highlight the importance of sustainable economic growth. Faster growth can increase government revenues and improve the country’s ability to manage debt relative to the overall size of the economy.
However, debt figures alone do not provide the complete picture of fiscal sustainability. Analysts also examine debt-to-GDP ratios, government revenues, interest costs, maturity profiles, and foreign exchange reserves when assessing financial risks.
For ordinary citizens, a growing debt burden can also have indirect consequences. Heavy government borrowing can influence interest rates, public spending priorities, taxation policies and broader economic conditions.
Therefore, controlling future debt growth will require consistent fiscal management and stronger revenue generation. Policymakers will also need to balance immediate financing requirements with longer-term economic stability.
The rise in Pakistan’s total debt from Rs 94.387 trillion in June 2025 to Rs 99.6 trillion in June 2026 marks another important milestone for the economy. The Rs 5.2 trillion annual increase will keep debt management firmly in focus.
Going forward, the government’s ability to control borrowing and manage repayments will remain crucial. Sustainable growth, stronger exports, improved revenue collection and disciplined spending could help Pakistan manage its financial obligations more effectively.
