Pakistan’s federal government debt rose by 0.7 percent on a month-on-month basis in February 2026, reaching Rs79.8 trillion, according to the latest figures released by the State Bank of Pakistan.

On an annual basis, the country’s central government debt expanded by 9.4 percent compared to Rs73.036 trillion recorded in February 2025, reflecting continued borrowing pressures amid fiscal and financing needs.

External Debt Shows Slight Decline

Data showed that central government external debt edged down to $83.0 billion in February 2026 from $83.4 billion a month earlier. However, it remained slightly higher than the $82.5 billion level recorded in June 2025.

Domestic Borrowing Continues to Rise

In contrast, domestic debt continued its upward trend. Central government domestic liabilities increased by 11.1 percent year-on-year and 1.2 percent month-on-month to reach Rs56.6 trillion in February 2026.

Within domestic borrowing, long-term public debt climbed significantly during the past year, rising from Rs42.721 trillion to Rs47.481 trillion. Meanwhile, short-term debt also expanded, growing from Rs8.231 trillion to Rs9.132 trillion over the same period.

The latest debt data highlights Pakistan’s increasing reliance on domestic financing even as external obligations remain relatively stable.