Pakistan’s total central government debt increased by 7.39% year on year to Rs83.64 trillion in June 2026, compared with Rs77.89 trillion recorded during the same month of the previous year, according to data released by the State Bank of Pakistan. The latest figures show a continued increase in the government’s debt burden as borrowing from domestic and external sources remained a major means of financing the fiscal deficit.
On a month on month basis, central government debt also increased during June. The debt stock rose 2.06% from Rs81.96 trillion in May 2026 to Rs83.64 trillion at the end of June. The increase during the month reflects higher borrowing across the domestic debt portfolio, while the overall debt position also includes borrowing from external sources.
Domestic debt represented the larger portion of the central government’s total debt and stood at Rs59.44 trillion in June 2026. The domestic debt portfolio comprised Rs48.45 trillion in long term debt, Rs10.93 trillion in short term debt and approximately Rs67 billion through Naya Pakistan Certificates. The State Bank of Pakistan data shows that domestic debt increased by 9.12% year on year and by 2.29% compared with the previous month.
Long term domestic debt reached Rs48.45 trillion by the end of June 2026, representing an increase of 6.12% compared with Rs45.65 trillion recorded in June 2025. On a month on month basis, long term domestic debt increased by 2.42%. The figures indicate that long term borrowing continued to account for the largest share of the government’s domestic debt portfolio.
Pakistan Investment Bonds remained the dominant component of long term domestic borrowing. The outstanding amount of Pakistan Investment Bonds stood at Rs35.3 trillion in June 2026, increasing by 0.81% year on year and 1.87% month on month. The instruments continued to represent the majority share of the government’s long term domestic debt, highlighting their importance as a source of government financing.
Short term domestic debt also recorded a significant increase during the period. The outstanding short term debt reached Rs10.93 trillion in June 2026, representing a 24.8% year on year increase. Market Treasury Bills accounted for the dominant share of short term borrowing, with outstanding holdings amounting to Rs10.8 trillion during the review month. Market Treasury Bills increased by 24.97% year on year and 1.83% month on month.
The increase in short term borrowing indicates a greater reliance on Market Treasury Bills within the domestic financing structure. Treasury bills are commonly used by the government to meet short term financing requirements, and their outstanding stock can change depending on fiscal needs, debt maturities and the government’s overall borrowing strategy.
Borrowing through Naya Pakistan Certificates also increased on an annual basis. The outstanding amount under these certificates reached Rs67 billion in June 2026, representing an 8.24% increase compared with the same period a year earlier. However, on a monthly basis, borrowing through Naya Pakistan Certificates declined. The June figure was 11.84% lower than the Rs76 billion recorded in May 2026.
The central government’s external debt portfolio also formed a significant component of the overall debt stock. According to the State Bank of Pakistan’s data, approximately Rs21.47 trillion of the government’s external debt comprised long term loans, while another Rs2.73 trillion came from short term loans. The figures indicate that long term external borrowing remained substantially larger than short term external borrowing within the government’s external debt structure.
The latest debt figures come as the government continues to rely on borrowing from domestic and foreign sources to finance its fiscal requirements. The year on year increase in the overall debt stock reflects the accumulation of financing required to cover the fiscal deficit. The increase in domestic debt, particularly through long term government securities and short term Market Treasury Bills, remains a central component of this financing structure.
With total central government debt reaching Rs83.64 trillion at the end of June 2026, the latest State Bank of Pakistan data highlights the scale of government borrowing at the close of the fiscal year. Domestic debt accounted for the larger portion of the total, while external long term and short term loans continued to form a substantial part of the overall debt position. The continued movement in these components will remain important for assessing Pakistan’s fiscal position and government financing requirements.
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