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ISLAMABAD: The country will spend around Rs 8.206 trillion on debt servicing including interest payments and retiring the principal as and when due during next financial year 2025-26 which is 46.7 percent of total budget outlay of Rs 17.573 trillion.

The government has earmarked Rs 8.206 trillion in the budget 2025-26 a mark-up against Rs 9.775 trillion for the current fiscal year which was later revised to Rs8.945 trillion. Next fiscal year the country will pay Rs1.009 trillion as mark-up on foreign debt against the revised estimates of Rs 1.038 trillion.

Public debt recorded at Rs76,007bn by end-March

The budget allocates Rs 7.197 trillion on domestic mark up in 2025-26 against Rs8.736 trillion in 2024-25 which was revised down to Rs 7.906 trillion.

Pakistan’s total public debt was recorded at Rs 76,007 billion end-March 2025, registering an increase of Rs4,761 billion (6.7 percent) during first nine months of current fiscal year, as it was Rs 71,246 billion on June 30, 2024.

Copyright Business Recorder, 2025

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