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Pakistan’s Public Debt Grows 7.7% to Rs86.72 Trillion by June 2026

October 1, 2026 • 23 hours ago •

ISLAMABAD: Pakistan’s total public debt has risen by 7.7% to Rs86.72 trillion by the end of June 2026, according to the Ministry of Finance’s Annual Debt Review for FY2026. This increase marks a slowdown compared to the 13% growth observed in the previous fiscal year.

The report highlights that despite the rise in absolute debt figures, the public debt-to-GDP ratio has improved, decreasing from 70.6% to 68.3%. This shift indicates a relative stabilization in the economy, attributed to various fiscal measures and a more cautious approach to borrowing.

This development has significant implications for the Pakistani economy, as a lower debt-to-GDP ratio may enhance investor confidence and provide the government with more room to maneuver in fiscal policy. However, the persistent increase in total debt raises concerns about long-term sustainability and the potential burden on future generations.

Looking ahead, the government is expected to continue monitoring debt levels closely, with upcoming discussions on fiscal policy strategies aimed at maintaining economic stability while addressing the challenges posed by rising debt.