Pakistan’s total government domestic debt and liabilities increased by 7.95% year-on-year to Rs57.89 trillion in September 2026, compared with Rs53.63 trillion recorded in the same month last year, according to the latest data released by the State Bank of Pakistan (SBP). However, on a month-on-month basis, domestic debt and liabilities declined by 1.61% from Rs58.84 trillion in August 2026. The latest figures reflect changes across different categories of government borrowing, including permanent debt, floating debt, unfunded debt and domestic liabilities. Permanent debt continued to account for the largest portion of the government’s domestic debt, while Treasury Bills and national saving schemes also contributed to the overall borrowing structure.
According to the central bank’s data, permanent debt reached Rs44.14 trillion in September 2026, registering an annual increase of 6.44%. Federal government bonds represented the largest component of this category, amounting to Rs43.23 trillion. The remaining portion included Rs474.94 billion in State Bank of Pakistan on-lending to the Government of Pakistan against Special Drawing Rights (SDR) allocations, Rs439.9 billion in prize bonds and approximately Rs2.8 billion in market loans. The figures indicate that government bonds continued to represent the dominant component of permanent domestic debt, reflecting the government’s reliance on longer-term securities and other permanent borrowing instruments to meet its financing requirements.
Floating debt also recorded a significant increase during the review month, rising 16.28% year-on-year to Rs9.77 trillion in September 2026, compared with Rs8.4 trillion in September 2025. Market Treasury Bills (MTBs) accounted for the major share of this category, with their outstanding value reaching Rs9.64 trillion during the month. Treasury Bills are among the government’s key short-term borrowing instruments and are used to manage financing requirements through periodic auctions in the domestic debt market. The increase in floating debt reflects higher outstanding short-term government borrowing compared with the corresponding period of the previous year.
The government’s unfunded debt increased by 9.21% year-on-year to Rs3.4 trillion in September 2026. The rise was primarily driven by growth in national saving schemes, which reached Rs3.32 trillion compared with Rs3.04 trillion in September 2025, representing an annual increase of 9.38%. These schemes form part of the government’s domestic financing structure and provide investment opportunities to individuals and other eligible investors while contributing to public sector borrowing. The increase in their outstanding value indicates a higher volume of funds mobilised through saving instruments compared with the same period last year.
Meanwhile, foreign currency loans recorded a decline during the review period, falling to Rs371.1 billion in September 2026 from Rs378.8 billion in September 2025. In contrast, borrowing through Naya Pakistan Certificates increased by 21.09% year-on-year to Rs75.8 billion during September. These certificates are part of the government’s investment instruments aimed at attracting funds from overseas Pakistanis through foreign currency and rupee-denominated investment options. Despite the annual increase, the outstanding amount under Naya Pakistan Certificates declined on a monthly basis by 14.06%, compared with Rs88.2 billion in August 2026.
In another development, the government’s domestic liabilities recorded a substantial annual decline of 33.23%, reaching Rs134.8 billion in September 2026. This decrease contributed to the overall month-on-month reduction in domestic debt and liabilities, which fell from Rs58.84 trillion in August to Rs57.89 trillion in September. Despite this monthly decline, the year-on-year figures show that the government’s domestic debt position remained higher than the level recorded in September 2025. The latest SBP data provides an overview of the changing composition of government borrowing, with permanent debt, floating debt and unfunded debt continuing to account for the major components of domestic financing.
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