Short-term borrowing pushes domestic debt higher as government relies on treasury bills to meet fiscal needs.
Image: ACCE
Pakistan’s gross domestic government debt and liabilities increased to Rs58.09 trillion in April 2026, according to the State Bank of Pakistan (SBP).
The figure rose by 0.9% from Rs57.57 trillion in March and was 11% higher than Rs52.52 trillion recorded in April 2025.
The increase was mainly driven by floating debt, which climbed to Rs10.56 trillion from Rs8.32 trillion a year earlier. Market Treasury Bills (MTBs) accounted for most of the rise, reflecting the government’s growing reliance on short-term borrowing to manage budgetary pressures.
Permanent debt stood at Rs43.85 trillion, with Pakistan Investment Bonds (PIBs) and GOP Ijara Sukuk remaining the largest components. Long-term Sukuk holdings also showed steady growth during the year.
Meanwhile, unfunded debt rose slightly to Rs3.24 trillion, largely supported by investments in national savings schemes.
Pakistan’s external debt and liabilities increased to Rs23.84 trillion in April 2026. As a result, total central government debt reached Rs81.93 trillion, up 9.3% from a year earlier.
Analysts said the rise in debt was mainly due to continued budget deficits, debt servicing costs and lower-than-expected tax revenues. The Federal Board of Revenue (FBR) reportedly faced a tax collection shortfall of around Rs680 billion during the first 10 months of FY26.
Experts noted that investors have increasingly shifted towards short-term government securities, reflecting uncertainty over the future interest-rate outlook and global economic conditions.
Despite the increase, analysts pointed out that public debt growth remains slower than in previous years, supported by fiscal consolidation measures and tighter monetary policies.
