Pakistan’s total government domestic debt and liabilities increased by 8.5% year-on-year to Rs58.89 trillion in August 2026, compared with Rs54.28 trillion during the same month of the previous year, according to the latest data released by the State Bank of Pakistan (SBP). The increase reflects higher borrowing across several categories of domestic debt, particularly floating debt and unfunded debt. On a month-on-month basis, however, the government’s domestic debt and liabilities declined by 0.87% from Rs59.41 trillion recorded in July 2026.
Permanent debt continued to account for the largest share of the government’s domestic debt during August, reaching Rs44.73 trillion. The category recorded year-on-year growth of 6.79%. Within permanent debt, federal government bonds represented the largest component at Rs43.82 trillion. The remaining amount included Rs474.94 billion in SBP on-lending to the government against the allocation of Special Drawing Rights (SDRs), Rs437.2 billion in prize bonds and Rs2.8 billion in market loans.
Floating debt recorded a considerably stronger increase during the year under review. The government’s floating debt rose by 22.08% year-on-year to Rs10.56 trillion in August 2026, compared with Rs8.65 trillion in August 2025. Market Treasury Bills accounted for the majority of the floating debt and stood at Rs10.43 trillion during the month. The increase in this category contributed significantly to the overall rise in the government’s domestic borrowing position compared with the corresponding period of the previous year.
The government’s unfunded debt also increased during August. According to SBP data, unfunded debt rose by 8.88% year-on-year to Rs3.36 trillion. The increase was primarily associated with government saving schemes, which recorded growth of 9.32% over the same period. The value of these saving schemes reached Rs3.29 trillion in August 2026, compared with Rs3.01 trillion in August 2025. The data indicates that saving schemes continued to represent the overwhelming portion of the government’s unfunded domestic debt during the month.
Foreign currency loans showed a significant decline during the period under review. These loans stood at Rs11.7 billion in August 2026, compared with Rs379.5 billion during August 2025. The substantial year-on-year reduction represents a sharp change in the foreign currency loan component of the government’s domestic debt and liabilities. The decline occurred alongside increases in several rupee-denominated domestic borrowing categories, including government bonds, Treasury Bills and saving schemes.
Borrowing through Naya Pakistan Certificates also increased during August 2026. The amount outstanding under these certificates rose by 34.04% year-on-year to Rs88.2 billion, compared with the corresponding period of the previous year. On a monthly basis, borrowing through Naya Pakistan Certificates increased by 7.04%, rising from Rs82.4 billion in July 2026. The month-on-month increase added to the growth recorded in this component of government borrowing.
Despite the overall increase in domestic debt and liabilities, the government’s domestic liabilities outside the main debt categories recorded a significant decline. Domestic liabilities fell by 34.45% year-on-year during August 2026 and stood at Rs132.6 billion in the review month. This decline contrasts with the broader increase in total domestic debt and liabilities, highlighting differences in the movement of individual components within the government’s domestic financing position.
The latest figures show that the year-on-year increase in Pakistan’s domestic debt position was driven by growth across permanent debt, floating debt and unfunded debt, with floating debt registering the fastest increase among the major categories. At the same time, foreign currency loans and other domestic liabilities declined substantially. The SBP data provides a detailed picture of the government’s borrowing position at the end of August and shows how the composition of domestic debt continued to shift across different financing instruments during the first months of fiscal year 2026-27.
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