Hike in govt debt clarified

The finance ministry has issued a clarification on a recent media report that claimed public debt was rising by Rs20 billion a day under the Shehbaz government, calling that picture incomplete. According to Business Recorder, officials argued that a nominal figure naturally climbs with time, so it is better to measure it against output, mainly nominal GDP. Measured that way, the debt-to-GDP ratio moved from 75% at the end of FY23 to 68% at the end of FY26.

Growth in government debt has slowed sharply, with the rise falling to 7.7% in FY26 from about 26% in FY23. The ministry compared this with a 16.7% average yearly rise across FY07 to FY26. Central-government debt also declined by roughly Rs689 billion between June and August 2026.

Official external debt reached $106.8 billion by end-FY26, up from $100 billion at end-FY22, averaging roughly $1.7 billion a year. Debt-servicing costs are estimated at Rs6.9 trillion for FY26, against Rs8.9 trillion in FY25, while foreign exchange reserves stood at $21.5 billion in September 2026. The ministry also argued that spreading the rise in debt across each day misreads both new borrowing and the overall debt position.