Pakistan’s total domestic debt and liabilities have reached a new peak of 56.82 trillion rupees as of February 2026, according to the latest data released by the State Bank of Pakistan. This represents a 10% year-on-year increase from the 51.29 trillion rupees recorded in February 2025. On a sequential basis, the debt burden continued its upward trajectory, rising by 1.2% from the 56.15 trillion rupees reported just a month earlier in January. The rising figures highlight the government’s ongoing reliance on internal borrowing to bridge fiscal gaps and manage state expenditures amidst a complex macroeconomic environment.
A detailed breakdown of the central bank’s data reveals that permanent debt remains the most significant component of the national debt profile. Totaling 43.89 trillion rupees, permanent debt grew by 11.31% over the past year. This category is largely dominated by federal government bonds, which account for 42.99 trillion rupees of the total. Other contributors to this segment include 475 billion rupees in SBP on-lending against Special Drawing Rights allocations, 426 billion rupees in prize bonds, and a smaller portion of 3 billion rupees in market loans. The heavy concentration in long-term bonds indicates a strategy focused on locking in financing for extended periods.
Floating debt, which typically consists of shorter-term obligations, also saw a marked increase of 10.95% year-on-year, reaching 9.13 trillion rupees in February. The primary driver of this segment remains Market Treasury Bills, which stood at 9.01 trillion rupees. The expansion in floating debt reflects the government’s active engagement in the short-term credit market to manage immediate liquidity requirements. While treasury bills provide flexibility, the continued growth in this area also exposes the debt profile to interest rate volatility in the local market.
The government’s unfunded debt, largely comprised of public savings initiatives, grew by 9.78% to reach 3.2 trillion rupees. This growth was primarily driven by a 10.3% increase in various saving schemes, which totaled 3.13 trillion rupees compared to 2.84 trillion rupees during the same period last year. Interestingly, while traditional saving schemes saw growth, borrowing through Naya Pakistan Certificates experienced a decline. Investment in these certificates fell by 4.29% year-on-year to 67 billion rupees, with a sequential drop of 6.94% from January’s 72 billion rupees, suggesting a shift in investor preference or a cooling of interest in these specific instruments.
Foreign currency loans held domestically also showed an upward trend, clocking in at 391 billion rupees compared to 375 billion rupees in the previous year. However, a significant positive development was observed in the government’s domestic liabilities, which saw a drastic reduction. Reported at 142 billion rupees for the review month, these liabilities dropped by 46.01% compared to February 2025. As the state navigates its debt management strategy, the balance between high-interest permanent debt and fluctuating floating debt remains a critical focal point for ensuring long-term fiscal sustainability and macroeconomic stability.
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