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The federal government’s total debt stood at Rs76.05 trillion in May 2025, reflecting a 12.3% increase compared to Rs67.73 trillion in the same month last year. According to recent data shared by the State Bank of Pakistan (SBP), this rise in debt has largely been driven by increased borrowing from both domestic and external sources to bridge the fiscal deficit.
On a month-to-month basis, the central government’s public debt also grew by 1.5%, rising from Rs74.94 trillion in April 2025.
Domestic debt recorded a notable jump as well. It rose by 15.9% year-on-year and 1.78% month-on-month. A significant portion of this was attributed to long-term borrowing. By the end of May 2025, long-term domestic debt had surged by nearly 24%, reaching Rs45.26 trillion, up from Rs36.52 trillion a year earlier.
Interestingly, while long-term borrowing increased, short-term debt actually declined. It dropped by 14.6% over the year, from Rs9.52 trillion to Rs8.14 trillion.
Amid these developments, Pakistan also secured a Rs1.25 trillion loan to help address its growing circular debt challenges.
