Pakistan's central government debt fell 0.5 percent in August to Rs82.953 trillion, but remained 7.1 percent higher than a year earlier, central bank data showed on Tuesday. The debt stock declined 0.8 percent in July and August, the first two months of fiscal year 2026-27.
Awais Ashraf, director of research at AKD Securities Limited, attributed the fall to above-target revenue collection, higher SBP dividend transfers and prudent spending. He said external debt was virtually unchanged because the rupee strengthened, while domestic debt dropped 1.2 percent in the fiscal year to date.
SBP figures showed domestic debt up 8.7 percent on the year to Rs58.757 trillion in August, down 0.9 percent on the month, and external debt up 3.5 percent on the year to Rs24.196 trillion. In late August the government made its largest-ever early domestic repayment, retiring Rs1.2 trillion owed to the SBP ahead of schedule and taking total early retirements past Rs5.92 trillion.
The central bank transferred Rs1.9 trillion in profits to the government in FY26, after Rs2.5 trillion in FY25.