According to the latest data released by the State Bank of Pakistan, the total debt of the government of Pakistan has increased to Rs 79,322 billion as of January 2026. The trend of increasing government debt continues, with an increase in both domestic and external debt.
According to the state bank, the government’s domestic debt has reached Rs 55,978 billion after an increase of Rs 615 billion. This increase in domestic debt was taken to meet government expenses and meet financial needs.
Similarly, an increase of Rs 178 billion has been recorded in external debt, after which the government’s foreign debt has reached Rs 23,344 billion.
According to experts, the main reason for the increase in external debt is development projects, import payments and meeting the fiscal deficit.
According to the State Bank of Pakistan, the government borrowed a total of Rs 1,434 billion in new loans during the first seven months of the current fiscal year. During this period, the government borrowed from both domestic and external sources to cover the fiscal deficit and continue economic activities.
Economists say that the increase in government debt is considered a major economic problem in developing countries like Pakistan, as it can increase the pressure of debt repayment and interest payments in the future.
However, according to experts, if the debt is used for development projects and economic improvement, its positive effects can also come to the fore.
Economic analysts say that the government needs to maintain fiscal discipline, increase revenues and reduce unnecessary expenses so that the growing debt burden can be kept under control and the economy can be stabilized.
