The International Monetary Fund (IMF) has projected that Pakistan’s domestic debt will increase by approximately Rs4.5 trillion in fiscal year 2026–27, reaching Rs63.966 trillion, compared to an estimated Rs59.404 trillion in the current fiscal year.
In its latest report issued under the second review of the Extended Fund Facility (EFF) and the first review of the Resilience and Sustainability Facility (RSF), the IMF noted that domestic debt is expected to reach 47.1 percent of GDP in the current fiscal year. However, this ratio is projected to decline to 45.5 percent in the following fiscal year.
The report further stated that external debt is likely to rise to $130.704 billion in the next fiscal year, compared to an estimated $125.612 billion in the current fiscal year.
According to sources, Pakistani authorities have committed to improving liability management and reducing debt-related risks in coordination with the IMF. Consistent implementation of the recently published 2026–28 Debt Management Strategy has been described as crucial for extending debt maturities over the medium term and reducing risks associated with high short-term interest rates.
Officials also stated that, in line with their fiscal commitments, they utilized additional profits from the State Bank of Pakistan’s dividend to retire domestic debt, including Rs1,133 billion worth of Pakistan Investment Bonds (PIBs) held by the SBP.
