Pakistan's gross government domestic debt and liabilities climbed to Rs 58,089 billion in April 2026, up 11 per cent from Rs 52,523 billion recorded in April 2025, according to data from the State Bank of Pakistan (SBP) cited in a report by The Express Tribune. The figure also marks a sequential rise from Rs 57,566 billion in March 2026, reflecting sustained fiscal pressure on the Pakistani economy.

Key Drivers of the Debt Surge

The increase was primarily driven by floating debt and long-term securities, pointing to continued reliance on both short-term and medium-to-long-term borrowing instruments to meet fiscal requirements. Permanent debt stood at Rs 43,845 billion in April, up from Rs 41,160 billion a year earlier. Within this category, federal government bonds remained the largest component at Rs 42,938 billion, compared with Rs 40,279 billion in April 2025.

Floating Debt and Treasury Bills

Floating debt emerged as the most dynamic segment of Pakistan's domestic borrowing, rising to Rs 10.56 trillion in April, up sharply from Rs 9.58 trillion in March and Rs 8.32 trillion a year earlier. Market Treasury Bills (MTBs), the largest component within floating debt, increased to Rs 10.43 trillion from Rs 8.23 trillion in April 2025, reflecting sustained reliance on short-term borrowing to manage liquidity and budgetary pressures. This is the Nth consecutive month of MTB expansion, underlining structural dependence on rollover financing.

External Liabilities and Total Debt

Pakistan's external liabilities stood at Rs 23,841 billion in April, compared with Rs 22,959 billion in both March 2026 and a year earlier, according to the report. As a result, central government cumulative debt — combining domestic and external — rose to Rs 81,930 billion from Rs 74,936 billion in April 2025, marking a 9.33 per cent year-on-year increase.

Fiscal Consolidation Offers Partial Offset

Notably, the report points out that the pace of debt accumulation remains relatively moderate compared with prior years, attributed to ongoing fiscal consolidation efforts and improved revenue collection. External debt growth has also supported foreign exchange reserves amid a contained current account deficit, offering a degree of macroeconomic stabilisation. Critics, however, argue that structural dependence on short-term instruments like MTBs creates persistent rollover risk, leaving Pakistan's fiscal position vulnerable to interest rate shifts and investor sentiment.

What to Watch

With the IMF programme continuing to shape Pakistan's fiscal trajectory, analysts will closely monitor whether revenue improvements can meaningfully reduce the government's borrowing requirements in the months ahead. Any deterioration in the current account or a reversal of foreign inflows could quickly erode the relative moderation seen in recent debt growth figures.