KABUL: Pakistan’s total government and government-guaranteed debt rose to about 91 trillion Pakistani rupees (some 329,432,194,000 U.S. dollars) by the end of June 2026, Pakistani media have reported.
According to The News newspaper, the country’s debt increased by more than 6 trillion rupees over the past year, largely driven by government borrowing to meet expenditure and financing requirements.
The report said Pakistan increased borrowing from domestic banks, financial institutions, and other local sources during the year.
A senior Pakistani Finance Ministry official attributed the rising debt to higher interest rates and the increasing cost of servicing domestic loans.
The official said rising interest rates on loans from local banks and financial institutions had forced the government to allocate more funds to debt servicing.
Pakistan’s external debt also increased over the past year, rising from 28.06 trillion to 29.35 trillion rupees, an increase of 1.29 trillion rupees, the report added.