Pakistan debt rise: Pakistan’s central government debt rose to Rs78.5 trillion by December 2025, reflecting a 9.6% increase from the previous year. This rise, highlighted by the State Bank of Pakistan, underscores the country’s growing reliance on domestic borrowing.
The debt, standing at Rs78,529 billion, marked a 1% increase from November 2025, with domestic debt reaching Rs55.4 trillion. This increase highlights the government’s dependence on local financing as it navigates fiscal constraints and external repayment pressures.
Long-term domestic debt climbed to Rs46.6 trillion, a 13.3% year-on-year rise, as authorities aimed to mitigate rollover risks by extending debt maturities. Permanent debt reached Rs43 trillion, while unfunded debt was at Rs3.16 trillion. Foreign currency domestic loans saw a slight increase to Rs385 billion.
Short-term domestic debt grew more slowly, reaching Rs8.74 trillion, a 0.6% annual increase but a 4.6% monthly rise, indicating temporary liquidity management. Liabilities under Naya Pakistan Certificates decreased significantly to Rs62 billion, down 23.3% annually.
Externally, the debt was Rs23.16 trillion, a 6.4% year-on-year increase. In dollar terms, this equated to $82.7 billion in December 2025, up from $81.7 billion in November. This growth in domestic debt over external liabilities reflects a strategic policy shift towards local financing amid volatile global conditions.
The Pakistani rupee saw a slight increase against the US dollar, closing at 279.66 in the inter-bank market. Gold prices rose in Pakistan, aligning with international market trends, although strong US employment data tempered global gains. The price of gold per tola increased by Rs2,300 to Rs528,562, while silver prices per tola rose by Rs120 to Rs8,735.
Published in SouthAsianDesk, February 12th, 2026
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