Pakistan’s debt continues to rise, with both domestic and external liabilities increasing, according to State Bank of Pakistan (SBP). The country must repay $30.6 billion in foreign currency in the coming months, including $3.74 billion within a month.
Domestic debt surged 18.81% year-on-year to Rs51.28 trillion in February 2025. The government’s permanent debt, which includes federal bonds, rose 25.42% to Rs39.43 trillion. Short-term debt reached Rs8.23 trillion. Meanwhile, Pakistan Investment Bonds formed the largest share of long-term borrowing at Rs32.56 trillion.
Pakistan’s external debt remains a challenge. The government owes Rs21.73 trillion in long-term foreign loans and Rs288.59 billion in short-term external borrowing. Interest payments add further pressure, with $3.65 billion due this year.
The country also faces a $2.82 billion shortfall in foreign currency positions. Without external inflows or support from institutions like International Monetary Fund, foreign exchange reserves will remain under pressure. The rising debt signals continued reliance on borrowing to manage fiscal deficits.