ISLAMABAD — Pakistan’s public debt reached Rs86.72 trillion at the end of June 2026, an increase of 7.7% over the previous year, according to the Finance Ministry’s Annual Debt Review.
The report also shows an improvement in a key measure of the country’s debt burden. Public debt fell to 68.3% of the size of Pakistan’s economy, compared with 70.6% a year earlier.
This means the total amount owed increased, but debt became smaller relative to the overall economy.
Domestic debt accounted for Rs59.44 trillion of the total. This is money the government has borrowed within Pakistan, largely through financial instruments purchased by banks and other investors.
External public debt stood at approximately $98.08 billion. This represents borrowing from overseas lenders and is affected by foreign exchange rates and international financing conditions.
Government borrowing helps finance spending and meet existing obligations. However, interest payments also take up a substantial share of public funds, making the cost of borrowing important for the federal budget.
The Finance Ministry has been working to improve debt management, including by spreading repayments over longer periods and managing financing costs.
The latest figures present two developments together: Pakistan’s total public debt increased during the financial year, while its share of the economy declined.
The government’s future borrowing costs, repayments and economic growth will influence how the debt position changes in coming years.