Pakistan's total debt and liabilities reached about Rs98.9 trillion at the end of September 2026, according to the latest State Bank of Pakistan (SBP) data reported on 13 November. That is about 6.5% higher than a year ago.
The bigger story is not the size of the debt but the cost of carrying it. In just three months, July to September 2026, Pakistan spent about Rs2.9 trillion servicing its debt, about 33% more than in the same quarter last year.
Big national numbers can feel far away from a business. They are not. Debt this size shapes how hard FBR pushes for tax, how the rupee moves and how easily businesses can borrow. Here is what the figures say and what to do about them. If you want to test your own numbers against these pressures, our cash flow forecasting team can help.
The numbers in brief
As reported from SBP data (end-September 2026, compared with end-September 2025):
- Total debt and liabilities: about Rs98.88 trillion, up from Rs92.88 trillion (about +6.5%)
- Total debt: about Rs97.04 trillion, up from Rs90.11 trillion (about +7.7%)
- Government domestic debt: about Rs57.76 trillion, up from Rs53.43 trillion (about +8%), the largest part
- External debt (in rupees): about Rs37.20 trillion, up from Rs34.67 trillion (about +7%)
- Owed to the IMF: about Rs3.01 trillion, up from Rs2.54 trillion
- Total liabilities: about Rs3.41 trillion, down from Rs4.44 trillion
In dollars, SBP data shows Pakistan's external debt and liabilities at about $143 billion at the end of September 2026, up about 5.8% from $135.3 billion a year earlier.
The real pressure: the cost of servicing
For July–September 2026 (the first quarter of FY2026-27):
- Total debt servicing: about Rs2.90 trillion, up from Rs2.18 trillion (about +33%)
- Interest paid: about Rs1.69 trillion, up about 15%
- Interest on government domestic debt alone: about Rs1.39 trillion, up about 18%
- Principal repaid on external debt and liabilities: about Rs1.18 trillion, up about 86%
In dollar terms, Pakistan paid about $5.63 billion on external debt in the quarter ($4.53 billion principal and $1.10 billion interest). That is roughly a quarter of the $21.6 billion paid in the whole of last year, in just three months. (SBP marks these external figures as provisional.)
To put it in context: FBR collected about Rs4.09 trillion in tax in the four months to October, as we covered in our post on the FBR's Rs129bn shortfall. A very large share of what the government collects is going straight out again as interest and repayments.
What this means for businesses
None of the points below is a new announcement. They are the usual ways heavy debt servicing reaches the private sector.
- Tax pressure stays high. When interest takes a big share of revenue, the government needs more tax every year. Expect FBR to keep pushing on enforcement, notices and widening the base, not easing off.
- Bank credit competes with the government. The government borrows heavily from local banks. When banks can lend safely to the government, they tend to be more selective with businesses, especially smaller ones. Credit lines can take longer and need more security.
- The rupee needs dollars to pay foreign lenders. Large external repayments mean steady demand for dollars. That makes imported inputs, machinery, software subscriptions and foreign-currency loans a cost to watch.
- Government payments can be slow. If you supply government departments or state-owned companies, tight public finances can mean slower payment of your invoices.
- Few signs of quick relief. Spending pressure and IMF programme targets leave limited room for large tax cuts in the short term. Plan on today's tax rates, not hoped-for ones.
6 steps to take now
- Build a 13-week cash flow forecast. Know when cash comes in and goes out, week by week, so a slow receivable or a tax payment does not catch you short. Our cash flow forecasting service sets this up for you.
- Run a "what if" case. Test your budget with a weaker rupee, higher input costs and slower collections. If the business only works when everything goes right, it is time to adjust. See our budgeting & forecasting service.
- List your foreign-currency exposure. Imports, dollar loans, foreign software and freight. Agree prices with customers that let you pass on currency changes where you can.
- Arrange financing early. Talk to your bank before you need the money. Keep clean, up-to-date accounts; banks lend faster to businesses whose numbers they trust.
- Chase receivables, especially from government customers. Invoice on time, follow up on fixed dates and track who pays late.
- Keep tax compliance tight. With tax pressure unlikely to ease, a clean return and reconciled sales tax records are the cheapest protection against notices.
FAQ
How much debt does Pakistan have?
According to SBP data reported on 13 November 2026, total debt and liabilities were about Rs98.88 trillion at the end of September 2026, and total debt was about Rs97.04 trillion.
How much did Pakistan spend on debt servicing in July–September 2026?
About Rs2.90 trillion, up about 33% from the same quarter last year. Of this, about Rs1.69 trillion was interest.
How much external debt does Pakistan have?
About $143 billion in external debt and liabilities at the end of September 2026, up about 5.8% from a year earlier, per SBP data.
Why should a small business care about national debt?
Because it drives tax enforcement, bank lending appetite and pressure on the rupee. All three affect your costs, your access to credit and your cash flow.
Need help?
HLM Consultants helps businesses plan for a tight economy: cash flow forecasts, budgets with realistic scenarios, and clean accounts that banks and FBR trust. See our Cash Flow Forecasting and Budgeting & Forecasting services, or contact us to book a review.
Sources: State Bank of Pakistan data as reported by Mettis Global (13 November 2026): total debt and liabilities profile; external debt servicing, Q1 FY27 (provisional); external debt and liabilities, Q1 FY27. FBR collection figure from Dunya News and BOL News (November 2026). Percentages are rounded. This post is general information, not financial or tax advice.