Govt Debt Gets Worse

Pakistan's total public debt rose 7.7 percent year-on-year to Rs.

Key points

• While external debt rose 6.8 percent to $98.075 billion, 59.44 trillion.
• While Sukuk and Bai-Muajjal financing rose 35 percent to Rs, 10.928 trillion.
• While provincial and sub-national governments accounted for the remaining 16 percent, by June 2026, the federal administration accounted for 84 percent of Pakistan's external public debt.
• 4.283 trillion at the end of June 2026, with the power sector accounting for around 56 percent of the total.
• Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.

Pakistan's total public debt rose 7.7 percent year-on-year to Rs. 86.72 trillion by the end of June 2026, according to the Annual Debt Review Report for Fiscal Year 2025-26 published by the Ministry of Finance.

Despite the growth in the debt stock, the public debt-to-GDP ratio improved to 68.3 percent from 70.6 percent a year earlier. Gold Crashes Again to Start October.

Domestic debt rose 9 percent to Rs. While external debt rose 6.8 percent to $98.075 billion, 59.44 trillion. In dollar terms, total public debt stood at around $312 billion at the end of June 2026.

In practice, the government's interest payments declined 22 percent during FY26 to Rs. 6.948 trillion. The federal fiscal deficit additionally fell to Rs. 4.763 trillion from Rs. 7.089 trillion a year earlier.

Meanwhile, the federal primary surplus rose to Rs. 2.185 trillion from Rs. While net federal revenue rose 6 percent to Rs, 1.798 trillion. 10.52 trillion. Total non-interest expenditure rose by 2.3 percent during the year.

Under the Fiscal Responsibility and Debt Limitation Act, administration debt stood at Rs. 77.168 trillion, equivalent to 60.8 percent of GDP.

Around 75 percent of the federal fiscal deficit was financed through domestic sources, with net domestic financing reaching Rs. 3.586 trillion. External financing stood at Rs. 1.177 trillion.

Market Treasury Bills rose 25 percent to Rs. While Sukuk and Bai-Muajjal financing rose 35 percent to Rs, 10.928 trillion. 8.559 trillion. The share of commercial banks in administration securities climbed from 64 percent to 70 percent.

Pakistan additionally returned to international capital markets after a four-year gap. The administration issued a $750 million Eurobond in April 2026 and 1.75 billion yuan in Panda bonds in May 2026.

While provincial and sub-national governments accounted for the remaining 16 percent, by June 2026, the federal administration accounted for 84 percent of Pakistan's external public debt. Punjab's external debt stood at $6.40 billion, Sindh's at $5.62 billion and Khyber Pakhtunkhwa's at $2.97 billion. IMF to Tell Pakistan What to Sell Next.

During FY26, the administration repaid Rs. 1.926 trillion owed to the State Bank of Pakistan and purchased back Rs. 996 billion worth of market debt.

Administration guarantees stood at Rs. 4.283 trillion at the end of June 2026, with the power sector accounting for around 56 percent of the total. Stay Connected with ProPakistani.

Obtain the latest business news, market insights, and economic updates wherever you prefer. Follow on Google Discover.

Add as a preferredSource on Google Follow on Google News Join WhatsApp.

In short, govt Debt Gets Worse is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.