ISLAMABAD: Pakistan’s total public debt rose to Rs83.3 trillion by March 2026, reflecting continued reliance on both domestic and external borrowing amid rising interest costs and sustained fiscal pressures, according to the Economic Survey 2025-26.
The debt stock stood at Rs57.6 trillion in domestic liabilities and Rs25.7 trillion in external debt, bringing the total to Rs83.285 trillion by the end of the third quarter of FY2026. The level equates to around 65.6 per cent of GDP, breaching statutory limits under the Fiscal Responsibility and Debt Limitation Act.
Interest payments during July-March FY2026 reached Rs4.95 trillion, with Rs4.29 trillion paid on domestic debt and Rs660 billion on external obligations, consuming a significant share of the annual budget.
The government financed its fiscal deficit entirely through domestic borrowing during the period, relying mainly on medium- and long-term instruments such as Pakistan Investment Bonds (PIBs) and Government Ijarah Sukuk. Authorities also carried out buybacks of around Rs2.1 trillion in government securities under liability management operations aimed at reducing refinancing risk and lowering servicing costs.
To broaden the investor base, the government introduced a 15-year zero-coupon Pakistan Investment Bond, raising Rs263 billion, and expanded Islamic financing through a 10-year zero-coupon Sukuk. Sukuk issuances mobilised about Rs2.25 trillion during the first nine months of FY2026.
On the external side, Pakistan received $6.1 billion in budgetary inflows during the period, including $2.7 billion from multilateral lenders, $1.1 billion from bilateral partners, $2 billion via Naya Pakistan Certificates and $200 million from commercial banks. It also received $1.2 billion under the IMF’s Extended Fund Facility.
Broader data show Pakistan’s debt burden has increased sharply over the past decade, rising nearly five-fold since 2015 and multiplying further over successive administrations as governments repeatedly turned to borrowing to finance fiscal gaps.
