Pakistan’s domestic debt declined by Rs. 1.636 trillion during the first quarter of FY27, bringing the total outstanding debt to Rs. 57.757 trillion by the end of September 2026.
According to State Bank of Pakistan (SBP) data, domestic debt stood at Rs. 59.393 trillion on June 30, marking a significant reduction in government borrowing during July-September.
The government also stepped up debt repayments, with net retirement of scheduled bank debt reaching Rs. 1.847 trillion during July-October FY27, compared with Rs. 45 billion in the same period last year. Borrowing through Pakistan Investment Bonds (PIBs) declined by Rs. 1.756 trillion to Rs. 33.543 trillion, while Treasury bill borrowing fell by Rs. 1.163 trillion to Rs. 9.640 trillion.
The decline comes amid higher government revenues and fiscal consolidation efforts under Pakistan’s International Monetary Fund (IMF) programme. Planning Minister Ahsan Iqbal recently said the fiscal deficit narrowed to 2.6% of GDP in FY26, compared with 5.4% in FY25.
Despite the quarterly decline, domestic debt increased by Rs. 4.331 trillion over the 12 months ending September 2026. Meanwhile, external debt rose by Rs. 700 billion in rupee terms, reaching Rs. 24.9 trillion by the end of September.
