Pakistan's public and publicly guaranteed debt (PPG) has gone up by Rs6.21 trillion by the end of June 2026, as total PPG debt increased from Rs84.77 trillion to Rs90.98 trillion during the June 2025 to June 2026 period. Overall, the public and publicly guaranteed debt touched Rs90.9 trillion by the end of June 2026 compared to Rs84.8 trillion by June 2025, so in totality, it went up by Rs6.2 trillion in one year.
A top Finance Ministry official told Probes Pakistan that Rs6.2 trillion increased in the shape of public debt while Rs0.01 trillion ballooned in the shape of publicly guaranteed debt. However, while the total PPG has gone up in absolute figures, the PPG debt-to-GDP ratio witnessed a decline of 2.6 percentage points, falling from 74.3pc in June 2025 to 71.7pc by the end of June 2026.
There is a massive surge in domestic debt as it went up by Rs4.93 trillion in the last one-year period, increasing from Rs56.7 trillion to Rs61.65 trillion from June 2025 to June 2026. This increase in domestic debt was the result of changes in interest rates given the higher share of floating debt, said the official.
As of end-June 2026, fixed-rate instruments of domestic debt remained at 27pc of government securities, while the maturity profile comprised 20pc short-term and 80pc long-term maturity. The average time to maturity of domestic debt hovered around 3.8 years, with the average time to re-fixing standing at 1.4 years.
This indicates the average period is exposed to interest rate pricing risks, said the official. External debt ballooned by Rs1.29 trillion, increasing from Rs28.06 trillion in June 2025 to Rs29.35 trillion by June 2026.
As of the end of June 2026, the official said that external debt comprised 60pc at fixed rates while 40pc was at floating rates. The maturity profile of external debt comprises 10pc short-term and 90pc long-term debt, with the average time to maturity exceeding 6 years.
Total outstanding guarantees in public debt stood at Rs4.28 trillion, out of which domestic guarantees amounted to Rs2.04 trillion while external guarantees stood at Rs2.24 trillion as of June 2026. Total public debt stood at Rs86.7 trillion, having increased by Rs6.2 trillion or 7.7pc from Rs80.5 trillion by the end of June 2025.
The official stated that despite an increase in the absolute figure, the public debt-to-GDP ratio declined from 70.6pc to 68.3pc, mainly because of an increase in nominal GDP, a federal primary surplus of Rs2.18 trillion, and debt buybacks. Interest payments also decreased by Rs1.94 trillion or 21.7pc, falling from Rs8.88 trillion in FY25 to Rs6.95 trillion in FY26.