- August 12, 2026
- Posted by: Tresmark
- Category:
Pakistan’s central government debt increased by Rs5.75 trillion, or 7.4%, during FY26, reaching Rs83.64 trillion by the end of June 2026, according to data released by the State Bank of Pakistan (SBP).
The increase was largely driven by domestic borrowing. Domestic debt rose 9% to Rs59.94 trillion, while external debt increased 3% to Rs24.2 trillion during the fiscal year.
The rise in debt reflects the government’s continued borrowing requirements to finance the fiscal deficit, despite the Federal Board of Revenue achieving its revised Rs13 trillion tax collection target.
Looking ahead, the government has targeted a primary surplus of 2% of GDP and an overall fiscal deficit of 3.6% of GDP for FY27. SBP stressed that meeting these targets will require stronger revenue mobilization, expenditure discipline and continued fiscal reforms.
