ISLAMABAD: Pakistan’s total debt has risen to Rs99.6 trillion, ARY News reported on Wednesday, citing data released by the State Bank of Pakistan (SBP).
According to the details, Pakistan’s total debt increased by Rs5.2 trillion during fiscal year 2024-25, with total debt standing at Rs94.387 trillion as of June 30, 2025, according to the SBP.
The federal government’s domestic debt rose to Rs59.441 trillion, while Pakistan’s external debt reached Rs36.19 trillion by June 2026, the central bank reported.
During fiscal year 2026, Pakistan made total debt repayments of Rs11.966 trillion. Of this amount, Rs4.466 trillion was paid towards the principal of external debt, while Rs7.266 trillion was paid in interest on the country’s debt, according to SBP data.
Read more: Circular Debt becomes challenge for Govt in talks with IMF: Sources
In comparison, interest payments on debt stood at Rs9.466 trillion during fiscal year 2025.
The staggering electricity sector’s Circular Debt has become a major challenge for the government during talks with the International Monetary Fund (IMF) to secure the next loan instalment.
Review talks with the global lender are scheduled to be held in Pakistan next month.
Sources state that the circular debt is 130% larger than the limit set by the IMF, which had originally targeted keeping the debt at Rs 1,600 billion.
The US-Iran conflict led to an increase in global energy prices, which in turn caused the circular debt to surge, according to sources.