PAKISTAN’S debt has crossed Rs100 trillion raising doubts about the stabilisation programme’s veracity. First, it’s not advisable to use absolute amounts or per capita debt. The correct way is to use indicators that relate public debt stock and debt servicing to national income, exports of goods and services, revenues, total foreign exchange earnings and foreign exchange reserves to gauge the future capacity to discharge these obligations. To begin with, clarify the various definitions that have created a lot of confusion in laymen’s minds. Pakistan’s total debt and liabilities consist of public debt and private debt. Public debt accounted for 91 per cent of the total stock of outstanding debt and liabilities on June 30, 2026. The remaining 9pc is the private debt mostly to borrowers abroad, for which the government has no fiscal obligation. However, the State Bank of Pakistan (SBP) has to provide foreign exchange to service this debt. Within the gross public debt, the government’s share was almost 92pc while the balance was owed by public enterprises but guaranteed by the government. Borrowing from the IMF is also included in the gross public debt, although it is the SBP’s liabili
