Pakistan’s Central Govt Debt Rises to Rs. 77 Trillion in October

Pakistan’s central government debt rose 0.5 percent month-on-month to Rs. 77 trillion in October 2025, and an 11.4 percent increase from Rs. 69.1 trillion in October 2024, according to data released by the State Bank of Pakistan (SBP) on Thursday. However, the debt fell by Rs. 908 billion, or 1.16 percent, to Rs. 76.98 trillion in the first four months of the current fiscal year. Domestic debt reached Rs. 53.976 trillion at the end of October, marking a year-on-year increase of 14.3 percent. It rose by 1.0 percent month-on-month but declined by 0.91 percent compared to June, mainly due to reduced government domestic borrowing needs. External debt stood at Rs. 23 trillion by the end of October, up 5.1 percent from a year earlier. However, foreign debt decreased by 0.8 percent compared to the previous month and was down 1.76 percent since June, reflecting limited external inflows and moderated short-term repayments. Pakistan posted a fiscal surplus of 1.6 percent of GDP, or Rs. 2.1 trillion, in July-September FY26, compared to a surplus of 1.7 percent during the same period last year, supported by substantial profits of Rs. 2.42 trillion received from the central bank. The SBP reported higher-than-average profits and dividends in FY25, driven by record-high open market operation positions. Despite the improvement in the fiscal balance, government revenue collection remained weak in the first four months of the fiscal year. The Federal Board of Revenue (FBR) missed its collection target by nearly Rs. 274 billion during July to October FY26, mainly due to a decline in domestic sales tax revenue. Between July and October, the FBR collected Rs. 3.835 trillion, falling short of the Rs. 4.108 trillion target. However, this figure represents a 12 percent increase compared to the Rs. 3.834 trillion collected during the same period last year.