Pakistan Debt: How Much the Country Owes in 2026
The definitive guide to Pakistan’s debt — the Rs86.7 trillion figure, domestic vs external borrowing, who the creditors are, what interest costs every year, and whether default is a real risk.
Last updated: 11 October 2026
Pakistan’s total public debt stands at Rs86,715 billion (Rs86.7 trillion) — about $312 billion — as of end-June 2026, per the Finance Ministry’s Annual Debt Review. Of that, Rs59.4 trillion (69%) is domestic and Rs27.3 trillion (31%) is external. Debt equals 68.3% of GDP, down from 70.6% a year earlier because the economy grew faster than the debt. Interest payments of Rs4.95 trillion in nine months of FY2026 are the federal budget’s biggest expense. Pakistan has never defaulted, and the $7 billion IMF programme remains on track.
At a glance
Pakistan’s debt in numbers
The official FY2026 figures — the freshest available.
Total public debt
Debt-to-GDP ratio
Interest in 9 months
Dollar equivalent
The number
How much Pakistan owes right now
The latest official figure — and the two ways of counting it.
| Measure (end-June 2026) | Amount |
|---|---|
| Total public debt | Rs86,715 billion (Rs86.7 trillion) — about $312 billion |
| Domestic debt | Rs59,441 billion (~69% of the total) |
| External debt | Rs27,274 billion (~31% of the total) |
| Debt as share of GDP | 68.3% (down from 70.6% a year earlier) |
| Under the FRDL Act definition | Rs77,168 billion — 60.8% of GDP |
| Per person | ~Rs359,000 (across 241.5 million people) |
These are the Finance Ministry’s Annual Debt Review FY2026 figures — the most authoritative count available. Note the two definitions: headline public debt (Rs86.7tr) and the narrower Fiscal Responsibility and Debt Limitation Act measure (Rs77.2tr), which nets off government deposits. When two commentators quote different debt numbers, this is usually why.
Trajectory
How the debt got here
A decade of accumulation — and a recent slowdown in the pace.
| End-June | Total public debt (Rs trillion) | Debt-to-GDP |
|---|---|---|
| 2016 | ~19.7 | — |
| 2020 | 36.4 | — |
| 2022 | 49.2 | — |
| 2024 | 71.2 | 67.7% |
| 2025 | 80.5 | 70.6% |
| 2026 | 86.7 | 68.3% |
Public debt has risen roughly 340% in ten years — about Rs67 trillion added since 2016. But the pace is slowing: debt grew 7.7% in FY2026 versus 13% in FY2025, which the Finance Ministry calls one of the lowest growth rates in two decades. And because the economy (Rs126,870 billion GDP) grew faster than the debt, the debt-to-GDP ratio actually fell from 70.6% to 68.3% — the number economists watch most.
Creditors
Who Pakistan owes
Two-thirds of the debt is owed at home — mostly to Pakistan’s own banks and savers.
Domestic
Rs59.4 trillion owed inside Pakistan — Pakistan Investment Bonds, Treasury Bills, Sukuk, National Saving Schemes and prize bonds. The buyers are largely Pakistani banks, pension funds and ordinary savers.
External
Rs27.3 trillion (about $98 billion equivalent) owed abroad — to multilateral lenders (IMF, World Bank, ADB), bilateral partners (notably China and Saudi Arabia), commercial banks and bondholders.
The IMF programme
The $7 billion Extended Fund Facility (approved September 2024) anchors the external side; Pakistan received $1.2 billion under it in July–March FY2026, alongside $6.1 billion in total external inflows.
Provinces borrow externally too: Punjab $6.40 billion, Sindh $5.62 billion, KP $2.97 billion and Balochistan $390 million in external public debt — the federal government holds about 84% of the external total.
Burden
What the debt costs Pakistan every year
Interest payments are the single biggest line in the federal budget.
Interest paid Jul–Mar FY26
On domestic debt
On external debt
Biggest budget expense
In the first nine months of FY2026 alone, interest payments consumed Rs4.95 trillion — more than the government spends on defence, development and running the civil administration combined. This is why the debt debate matters to ordinary Pakistanis: every rupee of interest is a rupee not spent on schools, hospitals or roads. The government’s response has been liability management — buying back Rs2.1 trillion in expensive securities and issuing longer-term Sukuk to cut refinancing risk.
The question
Will Pakistan default?
The fear that returns with every IMF review — answered with the latest data.
Pakistan has never defaulted on its sovereign debt, though it has come close — most recently in 2023, when reserves covered barely a month of imports. As of October 2026 the buffers look stronger: SBP reserves hit a new high of $21.44 billion, the IMF programme is on track, the debt-to-GDP ratio is falling, and debt growth has slowed to a two-decade low. The risks that remain are familiar — rupee depreciation (down 166% against the dollar over the decade to 2026, which inflates the rupee cost of external debt), export weakness, and political instability derailing the IMF programme. Default is a policy choice away, not a mathematical certainty — which is why each IMF review moves markets.
Reasons for confidence
Falling debt-to-GDP (68.3%), record SBP reserves, on-track $7bn IMF programme, slowing debt growth, successful Sukuk and PIB issuances raising trillions domestically.
Reasons for caution
Rs4.95tr annual interest bill, rupee depreciation inflating external debt, $98bn-equivalent external public debt to roll over, and history — Pakistan has needed 20+ IMF programmes.
FAQs
Frequently asked questions
The debt questions Pakistanis ask most — with official figures.
How much debt does Pakistan have in 2026?
Rs86,715 billion (Rs86.7 trillion), about $312 billion, at end-June 2026 — per the Finance Ministry’s Annual Debt Review FY2026.
What is Pakistan’s debt-to-GDP ratio?
68.3% at end-June 2026, down from 70.6% a year earlier — the economy grew faster than the debt stock.
How much is Pakistan’s external debt in dollars?
External public debt is Rs27,274 billion — roughly $98 billion equivalent. The State Bank’s broader external debt-and-liabilities measure is higher.
Who does Pakistan owe money to?
69% domestically — Pakistani banks, pension funds and savers holding PIBs, Treasury Bills and Sukuk — and 31% externally to the IMF, World Bank, ADB, bilateral partners like China and Saudi Arabia, and bondholders.
Will Pakistan default on its debt?
Pakistan has never defaulted. As of late 2026, SBP reserves are at a record $21.44 billion, the $7bn IMF programme is on track and the debt ratio is falling — but the Rs4.95tr interest bill and rupee depreciation keep the risk alive.
How much interest does Pakistan pay on its debt?
Rs4.95 trillion in July–March FY2026 alone (Rs4.29tr domestic, Rs660bn external) — the single largest federal budget expense.
What is the Fiscal Responsibility and Debt Limitation Act?
The FRDL Act (2005) is Pakistan’s fiscal-rules law: it defines ‘total public debt’ narrowly (netting off government deposits) and sets debt limits. Under its definition, debt is Rs77.2 trillion (60.8% of GDP) — the smaller of the two official figures.
Explore Pakistan’s economy
Debt, trade, inflation, remittances and growth — browse the full Pakistan Economy collection.
All figures in this guide come from the Finance Ministry’s Annual Debt Review FY2026, the Economic Survey 2025-26, the Debt Policy Statement and State Bank data. Debt statistics are revised periodically — check finance.gov.pk for the latest releases.