ISLAMABAD: Pakistan’s total debt stock reached Rs76.01 trillion by the end of March 2025, reflecting a moderate increase as the country pursued fiscal consolidation and improved debt management.
According to the Pakistan Economic Survey 2024-25, public debt grew by 6.7% during the first nine months of
FY25 — slower than the 7.4% rise in the same period last year, primarily due to a higher primary surplus.
Domestic debt accounted for Rs51.52 trillion of the total, while external debt stood at Rs24.49 trillion.
Interest Payments Dominate Expenditures
The government spent Rs6.44 trillion in interest payments during July-March FY25, representing 66% of the full-year allocation of Rs9.78 trillion.
Of this, Rs5.78 trillion was paid on domestic debt — 66% of the Rs8.74 trillion earmarked — while Rs656 billion was paid on external debt, equivalent to 63% of the Rs1.04 trillion allocation.
This efficient execution of interest payments highlights improved cash flow planning and fiscal discipline.
The report attributes this performance to ongoing efforts to shift debt toward longer-term instruments, easing short-term repayment pressures.
Strategic Management of External Debt
Pakistan’s external public debt, recorded at $87.4 billion by end-March 2025, increased by $883 million in 9MFY25 — significantly lower than the $2.6 billion rise in the same period of the previous year.
This external debt comprises $79.13 billion in government debt and $8.23 billion in loans from the International Monetary Fund (IMF).
Of the IMF debt, $3.88 billion is owed by the federal government and $4.39 billion by the central bank.
The Economic Survey notes that Pakistan has followed a strategic approach by focusing on long-term, concessional borrowing from multilateral and bilateral partners — a move that has helped ease immediate repayment risks.
On the domestic front, debt rose by Rs4.8 trillion during the first nine months of FY25.
The increase stemmed primarily from greater reliance on long-term debt instruments, while short-term borrowing and other components declined — indicating a preference for debt sustainability.
