Overview
- An official Annual Debt Review shows total public debt at $286.832 billion (PKR 80.6 trillion) as of June 2025, up nearly 13% year over year, with the debt-to-GDP ratio rising from 68% to about 70%.
- Domestic debt stood at PKR 54.5 trillion and external at PKR 26.0 trillion, with external public debt measured at $91.8 billion by June 2025.
- The finance ministry links the ratio’s increase to lower-than-expected nominal GDP growth as inflation cooled, noting the rise occurred despite fiscal consolidation efforts.
- External borrowing grew 6% on IMF disbursements, an ADB‑guaranteed $1 billion commercial loan, and other multilateral inflows, while domestic debt rose 15% year on year, the slowest pace in three years; a staff‑level IMF deal for $1.2 billion remains pending board approval.
- Eighty‑four percent of external public debt is held by the federal government and 16% by provinces, with Punjab the largest provincial borrower at $6.18 billion and Sindh posting the sharpest increase at $4.67 billion.