The central government’s debt surged by 11.23 per cent year-on-year (YoY), reaching Rs72.12 trillion in January 2025, compared to Rs64.84 trillion in January 2024, according to data released by the State Bank of Pakistan (SBP).
On a month-on-month (MoM) basis, the debt showed a modest increase of 0.66 per cent, rising from Rs71.65 trillion in December 2024. The significant YoY rise is attributed to borrowing from both domestic and foreign sources to bridge the fiscal deficit.
The SBP data revealed that the majority of the central government’s debt is domestic, standing at Rs50.24 trillion. This domestic debt is composed of Rs41.82 trillion in long-term debt, Rs8.35 trillion in short-term debt, and Rs65.86 billion through Naya Pakistan Certificates.
The domestic debt saw an annual increase of 17.87 per cent YoY and a slight sequential rise of 0.72 per cent. The government’s long-term debt rose by 22.49 per cent YoY to Rs41.82 trillion in January 2024, up from Rs34.15 trillion a year earlier, also marking a 1.75 per cent MoM increase. In contrast, short-term debt declined slightly by 0.27 per cent YoY to Rs8.35 trillion in January 2024.
Among the long-term domestic debt, Pakistan Investment Bonds (PIBs) were the largest contributor, amounting to Rs31.77 trillion, an increase of 24.14 per cent YoY and 1.79 per cent MoM. On the short-term side, Market Treasury Bills (MTBs) accounted for the bulk of borrowing, totalling Rs8.26 trillion, reflecting a decrease of 0.42 per cent YoY and 3.99 per cent MoM.
Borrowing through Naya Pakistan Certificates fell sharply by 36.43 per cent YoY to Rs65.86 billion in January 2024. On a monthly basis, this represented a drop of 18.65 per cent compared to Rs80.96 billion borrowed in December 2024.
Regarding external debt, the SBP data shows that Rs21.6 trillion came from long-term loans, with an additional Rs277.12 billion sourced from short-term loans.
