Pakistan public debt rose to Rs80.6 trillion by the end of FY25, up 13 percent from last year. Slower GDP growth and a Rs7.1 trillion fiscal deficit drove the increase.
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The debt-to-GDP ratio reached 70 percent, up from 68 percent. Domestic debt stood at Rs54.5 trillion, while external debt was Rs26 trillion.
Interest expenses grew 9 percent, much lower than last year’s 43 percent rise. Fiscal discipline and early repayments reduced some debt pressure.
Most domestic borrowing came from Pakistan Investment Bonds and Government Ijarah Sukuk. External loans were mainly multilateral and commercial, with net retirement of bilateral loans.
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The Ministry of Finance said debt growth has slowed from over 20 percent in previous years. Analysts warned that Pakistan public debt remains a challenge for economic stability.