Pakistan’s central government debt reached Rs76.05 trillion at the end of May 2025, according to the latest data released by the State Bank of Pakistan (SBP). This figure represents a 12.3% increase compared to the Rs67.73 trillion recorded in May 2024, highlighting a significant rise in the country’s fiscal obligations over the past year.
The SBP’s debt bulletin details that domestic debt now stands at Rs53.46 trillion, reflecting a year-on-year growth of 15.9%. External debt has also increased, reaching nearly Rs22.59 trillion, which marks a 4.52% rise from the same period last year. From April to May 2025 alone, the central government’s debt increased by Rs 937 billion, a monthly rise that, although substantial, is slightly lower than the Rs 1.035 trillion rise seen in the same period in 2024.
In March 2025, Pakistan’s total debt and liabilities stood at Rs89.83 trillion. The SBP data shows a clear shift toward long-term borrowing, with Pakistan Investment Bonds (PIBs) contributing Rs35.24 trillion to the public debt—up from Rs27.70 trillion in May 2024. In contrast, the share of market treasury bills (MTBs) declined to Rs 8.04 trillion from Rs 9.44 trillion the previous year. This trend indicates the government’s strategy to favour long-term instruments over short-term debt, aiming to reduce rollover and interest rate risks.
Finance Minister Muhammad Aurangzeb reported that the government managed to save Rs850 billion through refinancing efforts, even as the central government’s debt rose by Rs5.36 trillion to Rs52.52 trillion in April 2025. In comparison, the central government’s debt stood at ₹ 47.16 trillion as of June 2024. During the first nine months of the previous fiscal year (July 2024 to March 2025), domestic debt increased by Rs 4.8 trillion, primarily due to higher mobilisation through long-term instruments, while short-term and other debt components declined.
The SBP’s analysis underscores a clear policy shift toward long-term debt instruments, aiming to stabilise debt servicing costs and reduce fiscal vulnerabilities. However, the rapid accumulation of debt—especially domestic—remains a concern for fiscal sustainability and future economic planning. As Pakistan’s debt profile continues to evolve, careful management and transparent reporting will be crucial for maintaining economic stability and public confidence.
