KARACHI: Pakistan’s central government debt stock surged to Rs82 trillion by May 2026 due to massive borrowing from domestic banking system, the State Bank of Pakistan (SBP) reported on Monday.
According to SBP data, the country’s total debt stock - both domestic and external liabilities - increased by 5 percent or Rs4.061 trillion during July-May of FY26.
With this increase, the central government’s debt stocks surged to Rs81.949 trillion levels at the end of May 2026, compared to Rs77.888 trillion recorded in June 2025.
Although both domestic and external debt stocks increased during the period under review, the rise was far more pronounced in domestic debt.
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The sharp increase in public debt reflects the government’s accelerated domestic borrowing to finance the fiscal deficit, as tax revenues remained insufficient to meet its financing needs.
On the domestic side, debt stock rose by 6.6 percent, or Rs3.6 trillion, during July-May FY26. It stood at Rs58.107 trillion at the end of May 2026, up from Rs54.472 trillion in June 2025. External debt also mounted up by 1.8 percent or Rs425 billion to reach Rs23.842 trillion by May 2026.
According to SBP for this fiscal year (FY27), the government is targeting a primary balance surplus of 2.0 percent of GDP. However, it linked with the continuing with fiscal consolidation. SBP has also reiterated the need for timely implementation of structural reforms, particularly measures aimed at broadening the tax base and reforming PSEs.
It may be mentioned here that tax collections by the Federal Board of Revenue (FBR) rose 11 percent to Rs13 trillion in FY26 from Rs11.745 trillion in FY25.
Copyright Business Recorder, 2026
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