AS of January 2026, Pakistan’s central government debt continues its upward trajectory amid fiscal pressures and borrowing needs.

Data from Topline Securities show both domestic and external debt rising, with domestic debt at Rs 55.9 trillion—up 11.4% year-on-year and 1.1% month-on-month—driven by long-term debt of Rs 47.12 trillion, including Rs 43.56 trillion permanent debt. Short-term obligations stand at Rs 8.78 trillion, while Naya Pakistan Certificates jumped 16.3% month-on-month to Rs 0.072 trillion. External debt rose to Rs 23.3 trillion, up 6.7% year-on-year and 0.8% month-on-month, reaching US$83.4 billion from US$82.7 billion in December 2025.

Combining domestic and external obligations, total central government debt now stands at Rs 79.3 trillion, reflecting a 10% year-on-year increase and a 1% month-on-month rise. The growth in domestic debt, particularly long-term permanent debt, is the primary contributor to overall debt expansion, while the significant month-on-month jump in Naya Pakistan Certificates indicates increased short-term borrowing activity. External........

© Pakistan Observer