Pakistan's Public Debt Reaches Rs86.7 Trillion Over Four Years

Pakistan's public debt has increased by 76% to Rs86.7 trillion in four years, though the debt-to-GDP ratio slightly decreased to 68.3% in fiscal year 2026. This significant reliance on local banks for deficit financing is making government securities attractive, potentially limiting private sector credit. The government plans to shift towards longer-term bonds and broader market participation to manage this trend.