Pakistan’s debt jumps Rs1.4 trillion in April, reaches record Rs81.9 trillion

Pakistan’s central government debt rose by Rs1.406 trillion in April 2026, pushing the total stock of federal debt to a record Rs81.930 trillion, according to data released by the State Bank of Pakistan (SBP).

The increase took the government's total debt stock, comprising both domestic and external liabilities, from Rs80.524 trillion at the end of March 2026 to Rs81.930 trillion by the end of April.

The April increase alone accounts for nearly 34% of the total debt accumulated during the first ten months of the current fiscal year, highlighting the government's continued reliance on borrowing to meet financing and budgetary requirements.

The sharp rise was driven primarily by external borrowing. SBP data showed that the federal government's external debt increased by Rs882 billion during April, reaching Rs23.841 trillion compared with Rs22.959 trillion a month earlier.

Analysts noted that external debt had been on a declining trajectory until March 2026. However, fresh foreign borrowing during April reversed that trend and resulted in the largest monthly increase in recent months.

Domestic debt also continued to grow during the month. The stock of domestic debt rose by Rs523 billion, increasing from Rs57.566 trillion at the end of March to Rs58.089 trillion by the end of April 2026.

The increase in domestic liabilities was largely attributed to continued borrowing through government securities and other domestic financing instruments used to fund fiscal operations and debt servicing needs.

On a cumulative basis, the federal government's debt stock increased by Rs4.042 trillion, or 5%, during the first ten months of FY26.

Total debt stood at Rs81.930 trillion at the end of April 2026, compared with Rs77.888 trillion recorded at the close of FY25 in June 2025.

Domestic debt accounted for the bulk of the increase during the July-April period. The government's domestic debt stock rose by Rs3.617 trillion, reaching Rs58.089 trillion by the end of April from Rs54.472 trillion in June 2025.

External debt posted a comparatively smaller increase over the same period. Federal government external liabilities grew by Rs423 billion to Rs23.841 trillion, up from Rs23.417 trillion at the end of FY25.