Stories

Pakistan's Public Debt Soars, Government Plans Fresh Borrowing

News18•30-09-2026, 14:30

•Pakistan plans to borrow PKR 6.86 trillion in the current fiscal year to finance its budget deficit.
•The country's total public debt reached PKR 86.7 trillion by June 2026, a significant increase from PKR 49.3 trillion in June 2022.
•The government aims to shift towards medium- and long-term financing, utilizing Pakistan Investment Bonds and other longer-term instruments.
•Measures are being explored to attract institutional and retail investors through zero-coupon bonds, National Savings Schemes, and other government securities.
•Pakistan intends to rely on multilateral lenders and target over USD 2 billion through Eurobonds or international sukuk for external financing, while also refinancing foreign commercial bank loans and encouraging overseas Pakistani investments.

Pakistan's government plans to borrow around PKR 6.86 trillion during the fiscal year 2026-27 to finance its budget deficit.

Pakistan's total public debt stood at PKR 86.7 trillion at the end of June 2026, marking a significant rise from PKR 49.3 trillion in June 2022.

Pakistan is targeting more than USD 2 billion through Eurobonds or international sukuk during the fiscal year, depending on market conditions.