ISLAMABAD: The country witnessed a significant rise in public debt during the first 23 months of the current federal government. Official figures indicate that the federal government’s debt increased by a substantial Rs14,512 billion during this period.
This sharp increase in federal debt occurred between March 2024 and January 2026. According to documents issued by the State Bank of Pakistan, the growth in the debt burden was largely driven by a surge in domestic borrowing, although external liabilities also rose during the same period.
Data from the central bank shows that out of the total increase of Rs14,512 billion, domestic debt accounted for the largest portion. The federal government’s domestic debt grew by Rs13,303 billion during the 23-month period. External debt, while increasing at a slower pace compared to domestic borrowing, still rose by Rs1,209 billion.
As a result of this expansion in borrowing, the total debt of the federal government reached Rs79,322 billion by January 2026. It is important to note that in February 2024, which was the final month of the caretaker administration, the total federal government debt stood at Rs64,810 billion. The subsequent rise of more than Rs14 trillion since then underscores the scale of fiscal borrowing undertaken over the past two years.
According to the State Bank’s documentation, the federal government’s domestic debt amounted to Rs42,675 billion as of February 2024. Over the next 23 months, this figure increased sharply, reaching Rs55,978 billion by January 2026.
External debt, on the other hand, also recorded an increase during the same period, though at a comparatively modest level. In February 2024, the federal government’s external debt stood at Rs22,134 billion. By January 2026, this amount had risen to Rs23,344 billion, reflecting an increase of Rs1,209 billion.
