Federal debt hits Rs83.6tr

According to The Express Tribune, the federal government's debt reached Rs83.6 trillion by June, excluding loans from the IMF and some other liabilities. The State Bank of Pakistan's debt bulletin for fiscal year 2025-26 put the rise at Rs5.8 trillion, or 7.3%, compared with the previous year. Over the past four years the total has climbed 75%, even as gross revenues rose 107%.

The central bank said the increase was mainly driven by financing the federal fiscal deficit, with interest costs a major component. Domestic debt climbed from Rs54.5 trillion in June 2025 to Rs59.5 trillion, a rise of 9.1%, while external debt moved up from Rs23.4 trillion to Rs24.2 trillion. The smaller external increase was attributed to rupee appreciation against the US dollar over the year.

Spending rose 66% over the four years, much of it in areas that fall under the provinces, and over Rs8 trillion is earmarked for debt servicing this fiscal year. The law requires the government to cut debt by 0.5% to 0.75% of GDP each year, a target the paper says it is violating. The complete public debt picture is due from the SBP next month, which will allow the debt-to-GDP ratio to be determined.