Pakistan’s foreign debt climbed to Rs24,109 billion by July 2026, showing a continued increase in the country’s external borrowing, according to data from the State Bank of Pakistan.
The latest figure represents an increase of more than Rs850 billion compared with the previous year, when government foreign debt stood at around Rs23,250 billion.
Domestic borrowing also recorded significant growth during the same period. Pakistan’s domestic debt increased by more than Rs4,000 billion, adding further to the government’s overall debt burden.
The rise in both foreign and domestic debt highlights the continued financial pressure facing the government. While borrowing can help meet financing needs and support government spending, a growing debt burden also means higher repayment obligations over time.
Debt servicing remains an important challenge for Pakistan, as the government has to allocate a significant portion of its resources toward interest payments and repayment of borrowed funds. Increasing debt can place additional pressure on future budgets and limit the funds available for development and public services.
The latest figures underline the importance of managing borrowing levels and strengthening government finances. With both external and domestic debt continuing to expand, reducing financial pressures will remain an important economic challenge for Pakistan.
The government’s ability to manage its debt while meeting its financial requirements will continue to play a key role in determining the country’s economic outlook.
