The central government’s debt reached a total of Rs73.04 trillion by February 2025, marking a 12.69 per cent rise from Rs64.81 trillion in the previous year, as per figures from the State Bank of Pakistan (SBP). This increase is attributed to borrowing to manage the fiscal deficit.
On a month-to-month basis, the debt saw a 1.26 per cent rise from January’s Rs72.12 trillion.
A significant portion of the debt, Rs51.02 trillion, was domestic. Of this, Rs42.72 trillion came from long-term borrowing, while Rs8.23 trillion was short-term. Additionally, Rs70.14 billion came through Naya Pakistan Certificates, a specialised investment programme.
Domestic debt grew by 19.56 per cent compared to February 2024. Breaking it down further, long-term debt surged by 23.39 per cent to Rs42.72 trillion, while short-term borrowing saw a more modest increase of 3.48 per cent.
Pakistan Investment Bonds (PIBs) were the main driver of long-term domestic debt, which stood at Rs32.56 trillion, up 25.07 per cent from the previous year. In contrast, Market Treasury Bills (MTBs) dominated short-term borrowing, reaching Rs8.14 trillion, reflecting a year-on-year increase of 3.36 per cent.
Interestingly, borrowing via Naya Pakistan Certificates dropped by nearly 29 per cent year-on-year. However, on a monthly comparison, there was a 5.45 per cent increase in February 2025.
In terms of external debt, long-term foreign loans amounted to Rs21.73 trillion, with an additional Rs288.59 billion in short-term loans.
