Pakistan Plans ₹6.86 Trillion Additional Borrowing As Public Debt Surges To PKR 86.7 Trillion
Pakistan’s government plans to borrow PKR 6.86 trillion during the 2026-27 fiscal year to finance its budget deficit, as the country’s public debt rises sharply. The borrowing plan focuses on longer-term financing instruments, while Islamabad seeks support from multilateral lenders and international markets amid growing fiscal pressures.
Pakistan Plans ₹6.86 Trillion Additional Borrowing As Public Debt Surges To PKR 86.7 Trillion | AI Representational Image
Islamabad [Pakistan]: Pakistan’s government is planning to raise around PKR 6.86 trillion in additional debt during fiscal year 2026-27 to finance its budget deficit, as the country’s overall public debt continues to rise, according to a report by Dawn citing the Ministry of Finance’s Annual Borrowing Plan 2027.
Pakistan’s total public debt reached PKR 86.7 trillion by June 2026, compared with PKR 49.3 trillion in June 2022, marking a sharp increase over four years. The debt includes both domestic and external liabilities.
Shift Towards Long-Term Borrowing
The government’s borrowing strategy will focus on increasing medium- and long-term financing while reducing dependence on short-term treasury bills. Authorities plan to raise more funds through Pakistan Investment Bonds and other long-term instruments to improve debt management.
The Finance Ministry is also exploring measures to attract more participation from institutional and retail investors through options such as zero-coupon bonds, National Savings Schemes and government securities.
External Financing Plans
For overseas funding, Pakistan plans to rely on multilateral lenders while also seeking access to international capital markets. The government is targeting over USD 2 billion through Eurobonds or international sukuk during FY27, depending on market conditions.
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Authorities also plan to refinance foreign commercial bank loans and encourage overseas Pakistanis to invest through instruments such as Naya Pakistan Certificates.
The government said it will continue engaging with international credit rating agencies and pursue measures including debt buybacks and exchanges.
Pakistan’s rising debt burden and increased borrowing requirements highlight growing pressure on public finances, with Islamabad continuing to depend on domestic and external financing to meet fiscal obligations and sustain government expenditure.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
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