By S.M. Inam
KARACHI: Pakistan’s domestic debt increased by Rs615 billion in January 2026, according to the latest data released by the State Bank of Pakistan (SBP).
The central bank’s figures showed that the country’s total domestic debt rose from Rs47.86 trillion in December 2025 to Rs48.47 trillion by the end of January 2026.
The increase was mainly driven by higher government borrowing through market treasury bills and Pakistan Investment Bonds to meet fiscal requirements.
According to the SBP, the government has increasingly relied on domestic borrowing in recent months to finance the fiscal deficit amid limited external inflows.
Economists noted that the rising domestic debt could increase the government’s debt servicing burden and put additional pressure on the national budget.
The data also indicated that domestic debt now constitutes a significant portion of Pakistan’s overall public debt portfolio.
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