The State Bank of Pakistan has released comprehensive data indicating that the total domestic debt and liabilities of the government have climbed to 57.69 trillion rupees as of March 2026. This figure represents an 11.51 percent increase compared to the 51.74 trillion rupees recorded during the same month in the previous year. On a month on month basis the debt stock saw a steady rise of 1.54 percent from the 56.82 trillion rupees reported in February 2026 showing a continued reliance on internal borrowing to fund the fiscal deficit.
A granular look at the central bank statistics shows that permanent debt remains the largest component of the total borrowing profile. This segment reached 44.32 trillion rupees in March marking a year on year growth of 9.26 percent. Within this category federal government bonds emerged as the dominant instrument totaling 43.42 trillion rupees. Other contributors to permanent debt included 474.9 billion rupees in on lending against Special Drawing Rights and 427.2 billion rupees in prize bonds with a smaller fraction attributed to market loans.
Floating debt witnessed a more aggressive expansion rising by 21.92 percent over the last twelve months to reach 9.58 trillion rupees. The primary driver for this increase was the heavy issuance of Market Treasury Bills which stood at 9.46 trillion rupees by the end of the review month. This shift toward floating instruments reflects the government’s strategy to manage liquidity through short term market tools despite the higher sensitivity to interest rate fluctuations that these instruments typically carry.
The government’s unfunded debt also saw an upward trajectory growing by 9.53 percent to 3.22 trillion rupees. This was largely fueled by a renewed interest in national saving schemes which registered a 10.08 percent annual increase to reach 3.15 trillion rupees. These schemes remain a vital source of non bank borrowing for the state providing a relatively stable pool of capital from individual depositors and pensioners who seek secure returns on their domestic savings.
One of the most notable shifts in the debt profile was the significant jump in foreign currency loans within the domestic debt category. These loans surged to 387.3 billion rupees in March 2026 compared to just 95.8 billion rupees a year earlier. In contrast borrowing through Naya Pakistan Certificates experienced a cooling period with the outstanding amount dropping by 5.1 percent annually to 59.5 billion rupees. On a sequential basis the decline in these certificates was even more pronounced falling by nearly 11 percent from the previous month.
While the overall debt stock continues to expand there was a marked reduction in the domestic liabilities of the government. This specific segment dropped by 42.1 percent year on year settling at 128.2 billion rupees for the month of March. Analysts suggest that while the reduction in liabilities is a positive sign the overarching challenge remains the sustainable management of the massive domestic debt pile which continues to put pressure on the federal budget through high interest payments. The central bank continues to monitor these levels to ensure financial stability amidst the ongoing economic recovery.
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