Public debt surges 76pc to Rs86.7tr in four years
ISLAMABAD: With total public debt surging 76 per cent since June 2022 and gross financing needs (GFNs) reaching Rs28.65 trillion for the current fiscal year, the government on Tuesday announced plans to borrow an additional Rs6.86tr to finance the budget deficit. “Total public debt was recorded at Rs86.7tr at the end of June 2026 from Rs49.3tr at the end of June 2022, a 76pc increase over four…
Pakistan's public debt has surged by 76% to Rs86.7 trillion over the past four years, according to the Ministry of Finance. This sharp increase has led to a need for additional borrowing, with the government planning to borrow an extra Rs6.86 trillion in the fiscal year 2027 to cover the budget deficit. At the end of June 2026, the total public debt stood at Rs86.7 trillion, compared to Rs49.3 trillion at the end of June 2022, indicating a substantial rise in the nation's debt burden.
The debt composition comprises Rs59.4 trillion in domestic debt and Rs27.3 trillion in external debt. The ministry projects that the total federal fiscal deficit for FY27 will be Rs7.020 trillion, equivalent to approximately 20% of GDP. To manage this debt, the government aims to reduce reliance on short-term treasury bills and instead, issue medium- to long-term instruments, with higher net issuances of Pakistan Investment Bonds (PIBs) and fixed-rate PIBs, with a target of surpassing 50% of new issuances.
The government also plans to issue Ijara sukuk/Bai Muajjal and other hybrid sukuk structures, with gross annual sukuk issuances estimated at approximately Rs6.6 trillion.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
