Pakistan’s Debt Reaches Rs81.9 Trillion Excluding IMF Loans by 11MFY26

Pakistan’s central government debt, excluding loans from the International Monetary Fund (IMF), rose to Rs81.9 trillion during July-May FY2025-26, Finance Minister Muhammad Aurangzeb told the National Assembly.

 

The debt comprised Rs58.1 trillion in domestic borrowings and Rs23.8 trillion in external debt, excluding IMF obligations.

 

The minister said central government debt increased by Rs4 trillion, or 5.2%, during the 11-month period, marking the slowest pace of growth over an 11-month fiscal-year period in 15 years.

 

As of July 2026, total central government debt stood at Rs77.9 trillion, including Rs54.5 trillion in domestic debt and Rs23.4 trillion in external debt.

 

Pakistan’s estimated debt-to-GDP ratio stood at 68.5% in June 2026, while the ratio based on end-March figures was estimated at 62.2% for FY26.

 

Aurangzeb said fiscal consolidation, primary surpluses and improved debt-management measures, including debt buybacks and retirements, helped reduce reliance on short-term borrowing. Interest expenses declined 23% year-on-year to Rs4.9 trillion in 9MFY26, compared with Rs6.4 trillion a year earlier.

 

The government aims to bring the debt-to-GDP ratio down to 50% by FY33 under the Fiscal Responsibility and Debt Limitation Act.

 

Separately, Aurangzeb confirmed that Saudi Arabia placed an additional $3 billion with the SBP in April 2026, while its existing $5 billion deposit was also rolled over, strengthening Pakistan’s external financing position.