Pakistan’s Debt Shoots Up by Rs. 6.2 Trillion in a Year, Nearing Rs. 91 Trillion

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Pakistan’s public and publicly guaranteed debt rose by Rs. 6.21 trillion in one year, reaching Rs. 90.98 trillion by the… Read More The post Pakistan’s Debt Shoots Up by Rs. 6.2 Trillion in a Year, Nearing Rs. 91 Trillion appeared first on ProPakistani.

Pakistan’s public and publicly guaranteed debt rose by Rs. 6.21 trillion in one year, reaching Rs. 90.98 trillion by the end of June 2026, up from Rs. 84.77 trillion in June 2025.

The 7.3 percent increase was confirmed by a senior Finance Ministry official. Despite the jump, the debt-to-GDP ratio fell by 2.6 percentage points, from 74.3 percent to 71.7 percent, because the economy grew faster in nominal terms.

Domestic Loans Drive Most of the Increase

Domestic debt rose by Rs. 4.93 trillion, from Rs. 56.7 trillion to Rs. 61.65 trillion. The official linked the rise to interest rate changes, since a large share of domestic debt carries floating rates.

Only 27 percent of government securities are on fixed rates. The average time to maturity of domestic debt is about 3.8 years, but its average time to re-fixing is just 1.4 years, which leaves it exposed to interest rate swings.

External debt grew by Rs. 1.29 trillion, from Rs. 28.06 trillion to Rs. 29.35 trillion. About 60 percent of it is on fixed rates, 90 percent is long-term, and its average time to maturity is over six years.

Interest Bill Falls Sharply

Total public debt, excluding guarantees, stood at Rs. 86.7 trillion, up Rs. 6.2 trillion or 7.7 percent from Rs. 80.5 trillion, which had already meant every Pakistani owed around Rs. 333,000. Its ratio to GDP still dropped from 70.6 percent to 68.3 percent.

The official credited nominal GDP growth, a federal primary surplus of Rs. 2.18 trillion, and debt buybacks for the decline.

Interest payments fell by Rs. 1.94 trillion, or 21.7 percent, from Rs. 8.88 trillion in FY25 to Rs. 6.95 trillion in FY26.

Outstanding government guarantees totalled Rs. 4.28 trillion, including Rs. 2.23 trillion domestic and Rs. 2.24 trillion external. The Finance Ministry has earlier shared a detailed breakdown of Pakistan’s external debt.

The post Pakistan’s Debt Shoots Up by Rs. 6.2 Trillion in a Year, Nearing Rs. 91 Trillion appeared first on ProPakistani.