Pakistan’s total public debt rises by Rs6.21 trillion in one year

ISLAMABAD: Pakistan’s total public debt, including government-guaranteed liabilities, increased by Rs6.21 trillion between June 2025 and June 2026, reflecting a continued rise in the country’s overall borrowing.

A senior Finance Ministry official told The News that government debt increased by approximately Rs6.2 trillion during the period, while government-guaranteed debt rose by around Rs100 billion.

As a result, the country’s combined public debt and government-guaranteed liabilities climbed from Rs84.77 trillion in June 2025 to Rs90.98 trillion by the end of June 2026.

The figures represent a 7.3 per cent increase in the overall debt burden over the 12-month period.

Despite the substantial rise in the total amount of debt, Pakistan’s debt-to-GDP ratio recorded a decline during the same period.

According to the figures, the ratio fell from 74.3 per cent to 71.7 per cent by the end of June 2026.

The decline indicates that the country’s overall debt grew at a slower rate relative to the size of its economy, even as the nominal value of public debt continued to increase.

The latest figures highlight the contrasting trends in Pakistan’s debt position, with the total amount of outstanding liabilities rising while the debt-to-GDP ratio improved over the year.