According to the State Bank of Pakistan, the federal government’s total debt reached Rs. 81.935 trillion in May 2026. The latest figures show that the country’s debt has continued to increase, reflecting the financial challenges faced by the government in managing public finances and meeting its funding needs.
Compared with May 2025, the total federal debt increased by 7.8 percent. However, on a month-to-month basis, the increase was relatively small, indicating that the pace of borrowing remained more stable during the latest reporting period.
The report also shows that domestic debt recorded significant growth, rising to Rs. 58.107 trillion. This increase was mainly driven by higher long-term and short-term borrowing.
Governments often borrow money through different financial instruments to finance development projects, cover budget deficits, and meet other public spending requirements.
Economic experts say that public debt is an important part of a country’s financial system, but it must be managed carefully to ensure long-term economic stability.
Rising debt can increase the government’s financial obligations, including interest payments, which may reduce the funds available for development, education, healthcare, and other public services.
The latest figures highlight the ongoing fiscal and financing challenges facing Pakistan’s economy. Officials continue to work on improving revenue collection, managing government spending, and strengthening economic growth to help maintain financial stability.
At the same time, policymakers are focusing on reforms aimed at reducing budget deficits and improving overall economic performance.
The State Bank’s data provides an updated picture of the country’s financial position and borrowing levels. Economists believe that careful debt management, stronger economic policies, and sustainable fiscal planning will be important for maintaining economic stability in the years ahead.
They also stress the importance of balancing borrowing with measures that support long-term growth and reduce financial pressure on the national economy.
