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Pakistan’s Central Government Debt Climbs to Rs76 Trillion: SBP
Pakistan’s central govt debt hits Rs76.05tr by end-May — up 12.3% YoY. Domestic debt rose 15.9% to Rs53.46tr; external debt at Rs22.59tr. Long-term borrowing through PIBs surges.
ND
by News Desk
2025-07-05
Pakistan’s Central Government Debt Climbs to Rs76 Trillion: SBP

Pakistan’s central government debt rose to Rs76.05 trillion by the end of May 2025, showing a 12.3% year-on-year increase, according to the State Bank of Pakistan (SBP). This marks an alarming rise of over Rs8.31 trillion from Rs67.73 trillion in May 2024.

In its monthly debt bulletin released Friday, the SBP reported that domestic debt stood at Rs53.46 trillion, registering a 15.9% increase, while external debt rose 4.52% to nearly Rs22.59 trillion over the same period.

In just one month—from April to May 2025—the central government’s debt swelled by Rs1.11 trillion, slightly surpassing the Rs1.035 trillion increase seen in the same period last year.

Long-Term Borrowing on the Rise

The central government has increasingly relied on Pakistan Investment Bonds (PIBs) to meet its financing needs. PIBs now account for Rs35.24 trillion of the total debt—a sharp increase from Rs27.70 trillion in May 2024. Meanwhile, borrowing through Market Treasury Bills (MTBs) fell to Rs8.04 trillion, down from Rs9.44 trillion last year, indicating a shift toward long-term borrowing.

Recent Trends and Government Position

Earlier this year, Finance Minister Muhammad Aurangzeb stated that the government had saved Rs850 billion through debt refinancing measures. However, as of April 2025, the central government’s debt had already surged by Rs5.36 trillion, reaching Rs52.52 trillion in domestic debt alone.

Compared to June 2024, when the domestic debt stood at Rs47.16 trillion, the increase reflects the government’s growing dependence on long-term instruments like PIBs, while short-term debt continues to decline.

In the first nine months of the current fiscal year (July 2024 to March 2025), the government’s domestic debt increased by Rs4.8 trillion, with long-term borrowing contributing the most to this rise.

Total Debt & Liabilities

Pakistan’s total debt and liabilities stood at Rs89.83 trillion at the end of March 2025, according to previous SBP data, indicating the broader scale of the country’s fiscal challenges.

 
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