TRADE & ECONOMY

Pakistan’s Debt Hits Rs 80,681 Billion Amid Rising Domestic Borrowing

Pakistan’s total debt rises to Rs 80,681B as domestic borrowing surges. External debt slightly declines, but interest and guarantees add to mounting economic pressure.
2026-01-06
Pakistan’s Debt Hits Rs 80,681 Billion Amid Rising Domestic Borrowing

Pakistan’s overall debt burden has reached Rs 80,681 billion, as domestic borrowing continues to rise while external debt shows a slight decrease, according to the latest data released by the State Bank of Pakistan.

The country’s domestic debt increased by 12.7% year-on-year, rising from Rs 48,584 billion to Rs 54,619 billion. On a monthly basis, domestic debt grew by 1.2%, up from Rs 53,966 billion in October 25 to Rs 54,619 billion in November 25.

Meanwhile, external debt rose 5.3% annually from Rs 21,780 billion to Rs 22,925 billion. However, on a monthly basis, external debt slightly decreased by 0.3%, down from Rs 23,000 billion.

Total debt, combining domestic and external liabilities, has increased 10.2% over the year, from Rs 70,365 billion to Rs 77,543 billion, with a monthly increase of 0.7% from Rs 76,970 billion.

The State Bank report also highlighted the growing debt servicing pressure on the government. Interest payments on loans currently stand at Rs 1,474 billion, while government guarantees, in addition to loans, total Rs 1,664 billion.

“This brings the combined total of Pakistan’s loans, interest obligations, and government guarantees to Rs 80,681 billion,” the report noted, reflecting the rising fiscal and economic pressure on the country.

Economists warn that the surge in domestic borrowing, coupled with interest obligations and guarantees, could strain public finances further, leaving limited room for developmental spending and increasing vulnerability to global financial fluctuations.