Pakistan’s public debt reached Rs86.7 trillion by the end of June 2026, the close of fiscal year 2026.
Debt grew by 7.7% during the year. That is one of the slowest growth rates in 20 years. A year earlier, debt had grown by 13%.
The debt-to-GDP ratio actually fell. It dropped to 68.3% in FY26, down from 70.6% the year before.
Over the last four years, public debt has grown by 76% in total, according to Dawn’s review of government debt data.
The government paid Rs 6.9 trillion in interest during FY26. That is 22% less than the Rs 8.9 trillion paid a year earlier.
Interest payments now take up 35% of government revenue. In FY24, that share was 61%. Lower interest rates and better debt planning helped bring the cost down.
The government also posted a primary surplus of Rs 2.185 trillion in FY26. A primary surplus means revenue was higher than spending, once interest payments are set aside.
