 "Pakistan’s public debt climbs to $287 billion, debt-to-GDP ratio rises to 70%")
Pakistan’s total public debt reached USD 286.832 billion (PKR 80.6 trillion) by June 2025, marking nearly a 13 per cent increase compared with the previous year, according to official figures. The Ministry of Finance’s data shows that domestic debt accounted for PKR 54.5 trillion, while external liabilities stood at PKR 26.0 trillion.
The Annual Debt Review for FY 2025, released last month, detailed the composition of public debt at the close of the financial year. The report also highlighted that the country’s debt-to-GDP ratio rose to roughly 70 per cent in June 2025, up from 68 per cent in June 2024.
The ministry attributed the increase to slower-than-anticipated growth in nominal GDP, driven by significantly lower inflation, which dampened overall economic expansion. This, the report noted, pushed up the debt-to-GDP ratio despite ongoing efforts at fiscal consolidation.
“The domestic debt increased by 15 per cent Year-on-Year, reaching PKR 54.5 trillion, the lowest annual increase in the past three fiscal years,” it said.
External debt increased by 6 per cent YoY, reaching USD 91.8 billion as of June 2025, and the major reasons for this increase were disbursements from the IMF, an ADB-guarantee-backed commercial loan of USD 1 billion and inflows from other multilateral institutions.
As of June 2025, 84 per cent of Pakistan’s external public debt is primarily held by the Federal Government, while 16 per cent is owned by provinces and sub-national entities. Within the provinces, Punjab is the largest borrower with USD 6.18 billion (7 per cent), followed by Sindh at USD 4.67 billion (5 per cent), which recorded the sharpest increase during the year.
Impact Shorts
More ShortsKhyber Pakhtunkhwa’s debt rose to USD 2.77 billion (3 per cent), whereas Baluchistan USD 371 million and Pakistan occupied Kashmir USD 281 million, according to the document.
With inputs from agencies
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