Pakistan’s central government debt has reached Rs. 76.05 trillion as of May 2025, marking a 12.3% increase from Rs. 67.73 trillion in the same month last year. This rise in debt is mainly due to increased borrowing from both domestic and international sources to cover the country’s fiscal deficit, according to the latest data from the State Bank of Pakistan (SBP).
Month-on-month, the public debt of the central government grew by 1.5%, up from Rs. 74.94 trillion in April 2025.
A significant rise was seen in domestic debt. Year-on-year, it increased by 15.9%, and month-on-month, it went up by 1.78%. A large portion of this increase was due to long-term borrowing, which saw a sharp rise of 24%, reaching Rs. 45.26 trillion by the end of May 2025, up from Rs. 36.52 trillion in May 2024.
On the other hand, short-term debt has decreased. Over the past year, short-term borrowing dropped by 14.6%, falling from Rs. 9.52 trillion to Rs. 8.14 trillion.
In addition to these debt increases, Pakistan has also secured a loan of Rs. 1.25 trillion to help manage its growing circular debt issues.