Pakistan’s Debt Shoots Up by Rs. 6.2 Trillion in a Year, Nearing Rs. 91 Trillion

Pakistan's public and publicly guaranteed debt rose by Rs. 6.21 trillion in one year, reaching Rs.

Key points

• The 7.3 percent growth was confirmed by a senior Finance Ministry official.
• Regarding 60 percent of it is on fixed rates, 90 percent is long-term, and its average time to maturity is over six years.
• 1.94 trillion, or 21.7 percent, from Rs.
• The Finance Ministry has earlier shared a detailed breakdown of Pakistan's external debt.
• 6.2 trillion or 7.7 percent from Rs.

Pakistan's public and publicly guaranteed debt rose by Rs. 6.21 trillion in one year, reaching Rs. 90.98 trillion by the end of June 2026, up from Rs. 84.77 trillion in June 2025.

Meanwhile, the 7.3 percent growth was confirmed by a senior Finance Ministry official. Since the economy grew faster in nominal terms, despite the jump, the debt-to-GDP ratio fell by 2.6 percentage points, from 74.3 percent to 71.7 percent. Domestic Loans Drive Most of the Growth.

Domestic debt rose by Rs. 4.93 trillion, from Rs. 56.7 trillion to Rs. 61.65 trillion. Since a sizeable share of domestic debt carries floating rates, the official linked the rise to interest rate changes.

Only 27 percent of administration securities are on fixed rates. The average time to maturity of domestic debt is regarding 3.8 years, but its average time to re-fixing is just 1.4 years. It leaves it exposed to interest rate swings.

External debt grew by Rs. 1.29 trillion, from Rs. 28.06 trillion to Rs. 29.35 trillion. Regarding 60 percent of it is on fixed rates, 90 percent is long-term, and its average time to maturity is over six years. Interest Bill Falls Sharply.

Total public debt, excluding guarantees, stood at Rs. 86.7 trillion, up Rs. 6.2 trillion or 7.7 percent from Rs. 80.5 trillion, which had already meant every Pakistani owed around Rs. 333, 000. Its ratio to GDP still dropped from 70.6 percent to 68.3 percent.

In practice, the official credited nominal GDP expansion, a federal primary surplus of Rs. 2.18 trillion, and debt buybacks for the decline.

Interest payments fell by Rs. 1.94 trillion, or 21.7 percent, from Rs. 8.88 trillion in FY25 to Rs. 6.95 trillion in FY26.

Outstanding administration guarantees totalled Rs. 4.28 trillion, including Rs. 2.23 trillion domestic and Rs. 2.24 trillion external. In practice, the Finance Ministry has earlier shared a detailed breakdown of Pakistan's external debt. Stay Connected with ProPakistani.

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Taken together, the developments around pakistan's Debt Shoots Up by Rs. 6.2 Trillion in a Year, Nearing point to a situation that is still moving, and the coming days should bring more clarity.