Pakistan Federal Debt Surges to Rs 83.6 Trillion

The Government of Pakistan saw its federal debt, excluding specific central bank liabilities and IMF borrowings, surge to Rs 83.6 trillion by June 2026. This figure represents a 75 percent increase over the previous four years, according to data from the State Bank of Pakistan.

Energy sector circular debt contributed to this instability, rising to approximately Rs 5.29 trillion by the end of June 2026. The gas sector accounted for Rs 3.611 trillion of this total, while the power sector's debt stood at Rs 1.675 trillion, a figure lower than the International Monetary Fund's earlier estimates of Rs 1.764 trillion.

In a report to the Senate, the Ministry of Finance detailed the cost of servicing these obligations, stating the government paid Rs 32.239 trillion in interest on public debt between 2021 and fiscal year 2026. During this five-year window, the government repaid Rs 102.780 trillion in debt and borrowed Rs 2.845 trillion from the International Monetary Fund.