Pakistan's public debt, including publicly guaranteed obligations, rose by Rs6.21 trillion over one year to Rs90.98 trillion by the end of June 2026, a senior Finance Ministry official confirmed. The stock stood at Rs84.77 trillion in June 2025, a 7.3 percent increase. Even so, the debt-to-GDP ratio—the size of the debt relative to the economy—fell 2.6 percentage points, from 74.3 percent to 71.7 percent, because nominal GDP grew faster than the debt itself.
Domestic loans drive most of the increase
Domestic debt accounted for the bulk of the jump. It rose by Rs4.93 trillion, from Rs56.7 trillion to Rs61.65 trillion. The official linked that climb to interest-rate movements: a large share of domestic borrowing carries floating rates, so coupon costs adjust when rates change. Only 27 percent of government securities are on fixed rates. Domestic debt’s average time to maturity is about 3.8 years, but its average time to re-fixing—when rates can be reset—is just 1.4 years, leaving the portfolio sensitive to rate swings.
External debt grew more modestly, by Rs1.29 trillion, from Rs28.06 trillion to Rs29.35 trillion. About 60 percent of external debt is on fixed rates, 90 percent is long-term, and its average maturity exceeds six years, which offers more stability than the domestic book.
Interest bill falls as debt ratio eases
Total public debt excluding guarantees reached Rs86.7 trillion, up Rs6.2 trillion, or 7.7 percent, from Rs80.5 trillion. That earlier stock had already implied roughly Rs333,000 of debt per Pakistani. Relative to GDP, debt excluding guarantees still slipped from 70.6 percent to 68.3 percent.
The official credited nominal GDP growth, a federal primary surplus of Rs2.18 trillion—revenue left after non-interest spending—and debt buybacks for the softer ratio. Interest payments on Pakistan's public debt fell sharply: down Rs1.94 trillion, or 21.7 percent, from Rs8.88 trillion in FY25 to Rs6.95 trillion in FY26.
Outstanding government guarantees stood at Rs4.28 trillion, of which Rs2.23 trillion was domestic and Rs2.24 trillion external.
Timeline: what has happened so far
- June 2025: Public and publicly guaranteed debt stood at Rs84.77 trillion; domestic debt was Rs56.7 trillion and external debt Rs28.06 trillion.
- FY25: Interest payments totalled Rs8.88 trillion; debt excluding guarantees was Rs80.5 trillion, about Rs333,000 per Pakistani at that stock.
- June 2026 / end of FY26: Guaranteed-inclusive debt reached Rs90.98 trillion; domestic debt Rs61.65 trillion; external debt Rs29.35 trillion.
- FY26: Interest payments fell to Rs6.95 trillion; the federal primary surplus was Rs2.18 trillion; debt-to-GDP (including guarantees) was 71.7 percent.
Aasan alfaaz mein
Pakistan ka sarkari qarz ek saal mein Rs6.21 trillion barh kar June 2026 tak lagbhag Rs91 trillion ho gaya. Phir bhi economy ke size ke muqable mein qarz thora halka dikhai diya, kyunke GDP tez barhi. Gharailu qarz zyada bara; interest ki adaygi pichle saal se kaafi kam hui. Aam shehri ke liye seedha matlab yeh hai ke sarkar ka bojh ab bhi bara hai, lekin interest bill kam hone se budget par thori rahat mil sakti hai.
