Debt hits Rs78.5tr on local borrowing

In contrast to the government’s claims of improving fiscal conditions, Pakistan’s central government debt climbed to Rs78.5 trillion by the end of December 2025, marking a 9.6% year-on-year increase and a 1.3% rise on a monthly basis, driven primarily by the perpetual increase in domestic borrowing, according to the State Bank of Pakistan (SBP). Pakistan’s central government debt stood at Rs78,529 billion as of December 2025, reflecting a 1% increase from the previous month and a 10% increase YoY, noted Ismail Iqbal Securities. The domestic debt reached Rs55.4 trillion, reflecting an 11% annual increase and a 1.4% month-on-month expansion, underscoring the government’s continued reliance on local financing sources amid tight fiscal conditions and ongoing external repayment pressures, according to data compiled by Topline Securities.