Pakistan’s central government debt recorded a significant reduction of Rs780 billion in August 2025, according to the latest report from the State Bank of Pakistan (SBP).
The overall federal debt now stands at Rs77,458 billion, compared to Rs78,238 billion in July.
The SBP report highlighted that the bulk of the decrease came from the government’s domestic debt, which fell by Rs915 billion. Internal borrowing dropped from Rs54,988 billion in July to Rs54,733 billion in August.
The decline was largely attributed to a reduction in the volume of long-term internal debt as well as a decrease in loans received through bonds, including Sukuk.
While internal debt saw relief, Pakistan’s external debt rose by Rs135 billion during the same period. The external obligations increased from Rs23,250 billion in July to Rs23,385 billion in August, reflecting continued reliance on foreign loans.
The SBP also reported a drop in investments under the Naya Pakistan Certificate, which fell from Rs71 billion to Rs66 billion. Similarly, loans raised through various bonds registered a decline, further easing the burden of domestic liabilities.
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