Vietjet Thailand Adds Capacity to Domestic Flights with Fares from THB 0

Pakistan’s total government debt stock climbed to a record level of nearly Rs84 trillion by the end of June 2026, highlighting the growing financial burden facing the country amid continued reliance on domestic and external borrowing. According to the latest data released by the State Bank of Pakistan (SBP), the federal government’s total debt increased by 7.4% on a year-on-year basis during the fiscal year ended June 2026. The central government’s debt stood at Rs83,642 billion in June 2026, compared with Rs77,888 billion recorded in June 2025. The debt stock also increased significantly on a monthly basis, rising from Rs81,955 billion in May 2026. The latest figures indicate that the government’s debt increased by around Rs5,754 billion, or Rs5.75 trillion, over the course of the fiscal year. Domestic debt remains major component Domestic borrowing accounted for the largest portion of the government’s total debt. According to SBP data, the federal government’s domestic debt rose by 9.1% year-on-year to Rs59,441 billion by June 2026. The increase reflects continued dependence on the domestic financial market to meet the government’s financing requirements, including budgetary needs and debt-servicing obligations. Meanwhile, the federal government’s external debt increased by 3.3% during the year, reaching Rs24,201 billion by June 2026. Although the growth in external debt remained comparatively lower than domestic borrowing, the foreign-currency component continues to place pressure on the country’s external financing position, particularly when debt repayments coincide with periods of weak foreign exchange inflows. Debt servicing poses growing challenge The continued rise in the debt stock is also raising concerns about the government’s ability to manage debt-servicing costs while creating fiscal space for development spending and public services. A growing share of government revenues is required to meet interest and principal repayment obligations, limiting the resources available for infrastructure, social development and other productive investments. Economic experts have warned that if the debt trajectory is not brought under control, the rising burden could turn into a “debt trap” for the economy. They argue that reducing dependence on borrowing would require stronger revenue mobilisation, greater fiscal discipline, higher exports and sustained economic growth. Improving the efficiency of public spending and reducing reliance on debt-financed expenditures could also help contain the pressure.

Pakistan and the United States have reaffirmed their commitment to finalising a reciprocal trade framework at the earliest, signalling significant progress in negotiations aimed at strengthening bilateral trade, investment, and long-term economic cooperation. The renewed commitment was expressed during a virtual meeting held on Wednesday between Pakistan’s Finance Minister Muhammad Aurangzeb and United States Trade Representative (USTR) Ambassador Jamieson Greer. The two sides reviewed the progress made by their negotiating teams and discussed the remaining steps required to conclude the proposed agreement. According to an official statement, both countries acknowledged that negotiations have advanced substantially in recent months and reiterated their shared determination to complete the reciprocal trade framework as soon as possible. During the meeting, Finance Minister Muhammad Aurangzeb referred to the recent discussions held in Washington, D.C., and appreciated the constructive approach adopted by both negotiating teams. He said the steady progress reflects the mutual commitment of Pakistan and the United States to deepen economic ties and expand commercial cooperation. The finance minister stressed that maintaining the current momentum in negotiations is crucial for Pakistan’s broader economic agenda. He noted that a stronger trade and investment partnership with the United States would support Pakistan’s export-led growth strategy, improve economic resilience, attract foreign investment, and create new business opportunities for companies in both countries. Aurangzeb also highlighted the importance of continued collaboration with the US Export-Import Bank (EXIM Bank), saying enhanced financial cooperation could facilitate trade, encourage investment, and strengthen business-to-business engagement between the two countries. On the US side, Ambassador Jamieson Greer acknowledged Pakistan’s consistent engagement throughout the negotiation process and appreciated the progress achieved on key labour and regulatory reforms. He particularly welcomed Pakistan’s efforts to strengthen compliance with international labour standards, including measures related to preventing forced labour. The US trade representative reaffirmed Washington’s commitment to advancing bilateral trade discussions and expressed confidence that the remaining issues could be resolved through continued technical-level consultations between the two sides. Finance Minister Aurangzeb emphasised the need for close coordination between officials from both countries and called for accelerated technical discussions to build on the progress already achieved. He said timely completion of the agreement would open new avenues for economic cooperation and strengthen long-term bilateral relations. Both delegations expressed satisfaction over the pace of negotiations and agreed to continue regular engagement to finalise the outstanding elements of the reciprocal trade framework. The officials reaffirmed their shared objective of concluding the agreement in the near future, paving the way for stronger trade, investment, and economic collaboration between Pakistan and the United States.