Business Recorder
ISLAMABAD: Pakistan’s public debt continues its upward climb, rising by 1.1 percent equivalent to USD6.8 billion in the first half of current fiscal year 2026 to reach a staggering Rs81,374 billion (USD290.6 billion), according to the Finance Division. The public debt stock is comprised of 68 percent domestic debt and 32 percent external debt. The Division in its ‘debt bulletin 1H fiscal year 2026’, noted that domestic debt increased by 1.6 percent to reach Rs 55,363 billion, in comparison to 5.8 percent increase during 1H fiscal year 2025. External debt increased by only 1.2 percent to reach $92,873 million. Domestic debt increased by 1.6 percent during 1H fiscal year 2026, reaching Rs 55,363 billion, in comparison to an increase of 5.8 percent during 1H fiscal year 2025. Majority of domestic debt continues to be sourced from Medium-to Long Term Pakistan Investment Bonds (PIBs), followed by Market Treasury Bills (MTBs) and shariah compliant Government Ijarah Sukuks (GIS). READ MORE: As of end-June 2025: External debt up 6pc to USD 91.8bn YoY GIS showed the highest growth of 13 percent, in the first six months of this FY, reflecting the government’s efforts to increase share of shariah-compliant financing instruments. The stock of PIBs and MTBs showed decline of 0.2 percent and 0.1 percent respectively due to contained net borrowing and increase in issuance of shariah Compliant Instruments. The maturity profile of domestic debt marginally improved, with the share of short-term debt declining by 0.5 percent. This led to increase un ATM from 3.8 years as on June-25 to 3.99 years as on December 2025. On YoY basis, the improvement in maturity profile is evident, with share of short-term debt declining by 3.1 percent, with the resultant increase in Medium-to-Long term debt visible. Copyright Business Recorder, 2026
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