LAHORE (Dunya News) - The federal government’s debt burden has surged further, with total borrowings increasing by Rs7,000 billion on an annual basis.
According to sources from the State Bank, the total debt of the federal government reached Rs79,322 billion in January 2026, up from Rs72,124 billion in January 2025.
Sources added that domestic debt rose by 11.4 percent, reaching Rs55,978 billion by January 2026. External debt also climbed, increasing by 6.7 percent over the year, with foreign borrowings totaling Rs23,344 billion.
Pakistan borrows $10.6B while paying $13.3B in debt last fiscal year
Long-term debt grew by 12.7 percent during the year, bringing the total to Rs47,152 billion in January 2026.
Short-term borrowings also rose by 5.2 percent, reaching Rs8,784 billion, reflecting growing fiscal pressure on the government as borrowing continues to expand.