Pakistan’s total domestic government debt and liabilities reached Rs56.14 trillion in January 2026, reflecting an 11.1% increase compared to Rs50.53 trillion recorded during the same month last year, according to the latest figures released by the State Bank of Pakistan (SBP). The latest statistics underline the continued expansion in government borrowing as authorities manage fiscal requirements and financing needs.
On a month-to-month basis, the data also shows a modest increase in the country’s domestic debt position. Total domestic debt and liabilities climbed by 1.04% in January compared to Rs55.56 trillion reported in December. The gradual rise suggests ongoing reliance on domestic financial instruments to fund government operations and fiscal commitments. A significant portion of the domestic debt portfolio consisted of permanent debt, which stood at Rs43.56 trillion during the review period. This category alone registered a 12.98% year-on-year increase, highlighting the growing weight of long-term borrowing in the government’s debt structure. Permanent debt mainly comprises federal government bonds, which accounted for Rs42.66 trillion of the total.
Additional components within permanent debt included Rs1.3 billion in on-lending by the State Bank of Pakistan to the federal government against Special Drawing Rights (SDRs) allocations. Prize bonds made up another sizeable portion, totaling Rs35.27 trillion, while market loans accounted for the remaining Rs2.84 billion in the category.
Meanwhile, floating debt also expanded during the period under review, reaching Rs8.78 trillion in January 2026 compared to Rs8.35 trillion in January 2025. This represents a 5.17% year-on-year increase. Floating debt typically includes short-term instruments used by the government to manage liquidity requirements.
Within floating debt, Market Treasury Bills continued to represent the largest share. These instruments stood at Rs8.66 trillion in January 2026, reflecting their role as a key short-term borrowing tool for the federal government in the domestic financial market. The government’s unfunded debt also posted notable growth during the reporting period. Unfunded debt rose by 9.69% year-on-year to reach Rs3.18 trillion in January 2026. The increase was largely driven by higher inflows into national saving schemes, which recorded a 10.43% annual rise to Rs3.11 trillion compared to Rs2.81 trillion in the same period last year. Foreign currency loans maintained within the domestic debt category also increased. These loans were recorded at Rs386.33 billion in January 2026, up from Rs374.37 billion reported in January 2025, indicating a moderate rise in foreign-currency denominated borrowing.
Another contributor to the domestic borrowing mix was the Naya Pakistan Certificates program. Borrowing through these certificates climbed by 8.53% year-on-year to Rs72.19 billion in January 2026. The program, which targets overseas Pakistanis and local investors, also registered a significant month-to-month increase. On a sequential basis, the amount rose by 16.29% compared to Rs62.08 billion recorded in December.
While most components of domestic borrowing increased, the government’s domestic liabilities recorded a sharp decline. These liabilities fell by 43.8% year-on-year to Rs162.39 billion during the review month. The latest SBP data provides a detailed snapshot of Pakistan’s evolving domestic debt landscape, highlighting continued reliance on bonds, treasury bills, and saving schemes as the government navigates fiscal financing requirements.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem