KARACHI (HRNW): The State Bank of Pakistan (SBP) has released fresh data indicating a significant surge in the country’s borrowing, with the federal government acquiring an additional Rs 793 billion in debt during the month of January 2026 alone. This monthly spike has pushed Pakistan’s total central government debt to a staggering Rs 79.322 trillion.
Breakdown of Domestic and External Debt
The SBP report highlights a continued heavy reliance on local financing to bridge the fiscal deficit. The debt composition as of January 2026 is as follows:
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Domestic Debt: Increased by Rs 615 billion in a single month, reaching a total of Rs 55.978 trillion.
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External Debt: Rose by Rs 178 billion, bringing the total foreign debt stock to Rs 23.344 trillion.
Fiscal Year Performance
According to the central bank, the government has borrowed a total of Rs 1.434 trillion during the first seven months of the current fiscal year (July 2025 – January 2026). Economists note that while the government had seen some moderation in debt levels late last year, the recent escalation in regional tensions and higher interest payments have intensified the need for fresh borrowing. Despite these rising figures, the SBP’s recent Monetary Policy reports maintain that ongoing fiscal consolidation and robust workers’ remittances are helping to manage the overall debt-to-GDP ratio, which currently hovers around 70%.
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