According to a document released by the central bank, this increase has been attributed to a significant rise in domestic debt.

The SBP document detailed that the federal government’s domestic debt grew by Rs4,632 billion in 2024, while foreign debt decreased by Rs710 billion.

As of October 2024, the total government debt stood at Rs69,114 billion, with domestic debt at Rs47,231 billion and foreign debt at Rs21,884 billion.

For the last year ending December 31, 2023, the total federal government debt then stood at Rs65,195 billion, comprised to Rs42,595 billion in domestic debt and Rs22,600 billion in foreign debt.

The government is dependence on local financial sources is evident in the current situation, even as it manages to reduce its external debt obligations.