Pakistan’s total debt and liabilities increased to Rs99.59 trillion during fiscal year 2025-26, registering a 5.51% year-on-year increase from Rs94.39 trillion recorded in FY25, according to the latest data released by the State Bank of Pakistan. The figures show that the country’s overall debt position continued to expand during the year, with total debt accounting for the largest share of the combined amount. Total debt stood at Rs97.88 trillion in FY26, while total liabilities were recorded at Rs3.42 trillion. The latest figures provide an overview of the country’s domestic and external borrowing position, as well as the movement in liabilities during the financial year.
The country’s total debt comprised three major components, including gross government domestic debt, domestic debt of public sector enterprises and external debt. Gross government domestic debt stood at Rs59.44 trillion during FY26, making it the largest component of the country’s total debt. Public sector enterprises’ domestic debt amounted to Rs2.24 trillion, while external debt reached Rs36.20 trillion. External debt includes government external debt, non-government external debt, debt owed to the International Monetary Fund and intercompany external debt associated with direct investors abroad. The external debt position increased 3.14% year on year from Rs35.10 trillion in FY25, reflecting a rise in the overall external borrowing stock during the period.
Within the external debt position, Pakistan’s debt to the International Monetary Fund recorded a notable increase during FY26. IMF debt stood at Rs3.07 trillion, compared with Rs2.63 trillion in FY25, representing year-on-year growth of 16.84%. At the same time, total liabilities, which include both external and domestic liabilities, declined significantly during the financial year. Total liabilities fell 23.23% year on year to Rs3.42 trillion from Rs4.46 trillion in FY25. The decline was primarily driven by a reduction in external liabilities, which decreased to Rs2.41 trillion from Rs3.39 trillion recorded during the previous fiscal year.
Despite the increase in the overall debt stock, servicing of total debt and liabilities declined during FY26. Total debt and liabilities servicing fell 9.08% year on year to Rs11.97 trillion from Rs13.16 trillion in FY25. Interest payments on debt represented the largest portion of servicing costs, amounting to Rs7.27 trillion during FY26. This marked a 23.24% decline from Rs9.47 trillion in FY25, with the reduction largely attributed to lower interest payments on gross government domestic debt. Interest payments on gross government domestic debt fell to Rs5.99 trillion in FY26 from Rs8.08 trillion a year earlier, contributing significantly to the overall decline in debt servicing costs.
Principal repayment of external debt and liabilities, however, moved higher during FY26. External principal repayments increased to Rs4.47 trillion from Rs3.47 trillion in FY25. Interest payments on liabilities also recorded a modest increase, reaching Rs235 billion compared with Rs228 billion in the previous fiscal year. Short-term principal servicing stood at Rs174 billion in FY26, compared with Rs96 billion in FY25. The increase in short-term servicing was largely associated with higher repayments of government external debt, which rose to Rs164 billion from Rs70 billion a year earlier. Overall, the State Bank of Pakistan data shows that Pakistan’s combined debt and liabilities reached Rs99.59 trillion in FY26, while total servicing costs declined during the year as lower interest payments offset higher external principal repayments.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.