Govt debt climbs to Rs76 trillion amid higher long-term borrowing 

ISLAMABAD: Pakistan’s central government debt rose by 12.3 per cent year-on-year to Rs76.05 trillion in May 2025, up from Rs67.73 trillion in the same month last year, according to data released by the State Bank of Pakistan (SBP). 

On a monthly basis, the debt increased by 1.5 per cent from Rs74.94 trillion recorded in April

This rise is largely owing to increased borrowing from both domestic and external sources to meet government’s financing needs. 

Most of debt came from domestic borrowing, which stood at Rs53.46 trillion in May. Out of this, Rs45.26 trillion was long-term debt, Rs8.14 trillion was short-term, and Rs64.19 billion was raised through Naya Pakistan Certificates.  

Compared to a year ago, domestic debt grew by nearly 16 per cent. It also rose by 1.8 per cent compared to April. 

Long-term borrowing showed the biggest jump, increasing by nearly 24 per cent from Rs36.52 trillion in May 2024. It also climbed 2.6 per cent month-on-month. Pakistan Investment Bonds made up the largest part of this, reaching Rs35.24 trillion, which is 27.2 per cent higher than last year. 

On the other hand, short-term debt declined by around 14.6 per cent year-on-year. Market Treasury Bills, which are the main short-term instrument, dropped to Rs8.04 trillion, showing a fall of 14.9 per cent from last year and 2.4 per cent from April. 

Borrowing through Naya Pakistan Certificates also saw a yearly decline of 26.1 per cent. However, compared to April, the amount raised through these certificates increased by 3.4 per cent. 

The government’s external debt reached Rs22.58 trillion by the end of May. This included Rs22.38 trillion in long-term loans and Rs201.15 billion in short-term borrowing. 

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