ISLAMABAD: Pakistan is expected to spend around Rs8.054 trillion on debt servicing, including interest payments and repayment of principal amount, in the financial year 2026-27, which amounts to 42.9 percent of the total budget outlay of Rs18.771 trillion.
The government has earmarked Rs 8.054 trillion in the budget 2026-27 against Rs8.207 trillion for the current fiscal year, which was later revised to Rs6.937 trillion.
During the budget year 2026-27, on foreign debt servicing, the country will spend Rs1.071 trillion against Rs1.009trillion allocated for the current fiscal year, which was revised downward to Rs930.918 billion.
On domestic debt servicing, the government will spend Rs6.982 trillion in 2026-27 against Rs7.197 trillion in 2025-26, which was later revised to Rs6.006 trillion.
Pakistan’s total public debt was recorded at Rs 83,285 billion by the end of March 2026, registering an increase of Rs 2767 billion (around 3.4 percent) during the first nine months of the current fiscal year, as it was Rs 80,518 billion on June 30, 2025.
Copyright Business Recorder, 2026
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