SBP reports sharp rise in government debt

ISLAMABAD: (Web Desk) – The State Bank of Pakistan (SBP) has reported a significant increase in the federal government’s public debt during 2025, with domestic borrowing rising by 11 percent over the year.

According to the SBP’s annual public debt report released Thursday, domestic debt reached Rs55,363 billion by December 2025, reflecting a 1.40 percent increase on a monthly basis. In December 2024, domestic debt stood at Rs49,883 billion, marking an annual increase of Rs5,480 billion. The data also showed that domestic borrowing surged by Rs752 billion in a single month.

The report further highlighted a steady rise in external debt. By December 2025, external liabilities had climbed to Rs23,166 billion, showing a 1 percent monthly and 6 percent annual increase. A year earlier, in December 2024, external debt was recorded at Rs21,764 billion — an annual rise of Rs1,402 billion and a month-on-month increase of Rs241 billion.

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Due to the combined growth in domestic and external borrowing, the government’s total debt reached Rs78,529 billion by the end of December 2025. This represents a 1.30 percent increase compared to the previous month and a 9.60 percent rise on an annual basis.

For comparison, total government debt stood at Rs71,647 billion in December 2024, indicating an overall increase of Rs6,882 billion over the year and Rs993 billion within a single month.