Public debt reached US$97.95 billion, or Rs.32.98 trillion, at the end of June 2026, according to the latest report from the Public Debt Management Office (PDMO) of the Ministry of Finance.
The central government accounted for US$95.05 billion, or Rs.32 trillion, of the total debt.
Provincial councils and provincial institutions accounted for another US$20 million, while state-owned enterprises with government guarantees carried US$2.89 billion in debt.
The figures come as the government continues work on its debt restructuring process.
Domestic debt reaches Rs.19.2 trillion
The central government’s domestic debt stood at US$57.04 billion, or Rs.19.2 trillion, at the end of June.
Treasury bonds made up the largest share at US$47.73 billion.
Outstanding Treasury bills accounted for another US$7.05 billion.
Foreign debt stood at US$38.01 billion at the end of June. That was US$540 million higher than the US$37.47 billion recorded at the end of March.
The foreign debt included US$14.8 billion in multilateral debt, US$12.41 billion in commercial debt and US$10.8 billion in bilateral debt.
Among bilateral creditors, China accounted for the largest amount at US$5.01 billion. The government also owed US$2.27 billion to Japan and US$853.9 million to India.
Among multilateral creditors, the Asian Development Bank accounted for US$6.89 billion, the World Bank for US$4.67 billion and the International Monetary Fund for US$2.62 billion.
Rs.2.7 trillion paid in debt service
The government paid Rs.2.7 trillion towards debt service during the second quarter of 2026.
Domestic debt accounted for Rs.2.44 trillion, including interest payments.
The government paid another Rs.257 billion towards foreign debt during the quarter.
In US dollar terms, foreign debt payments included US$573.9 million in principal and US$230.4 million in interest. That brought total external debt-service payments to US$804.3 million.
Commercial external debt stood at US$12.41 billion, including US$10.01 billion in International Sovereign Bonds (ISBs).
The new sovereign bonds issued after the 2024 restructuring have maturity dates ranging from 2028 to 2038.
13 bilateral debt arrangements remain ongoing
The PDMO report says several major steps in the restructuring process have been completed.
These include arrangements involving the Official Creditor Committee, China Exim Bank, China Development Bank and ISB holders.
The ISB exchange was completed in December 2024, with participation of about 98%.
Bilateral restructuring arrangements have also progressed with countries including Japan, India, France, Hungary, Saudi Arabia, the United Kingdom, Australia, Denmark, Belgium and Germany.
Debt servicing has resumed under the relevant agreements with those creditor countries.
However, the restructuring process is not yet complete.
The report states that restructuring related to debt-service obligations to 13 countries remains ongoing.
The latest figures show that the debt restructuring process has moved forward, but the government still carries almost US$98 billion in public debt and continues to make large debt-service payments.
Last modified: September 2, 2026
