According to the Ministry of Finance’s Annual Debt Review Report 2025, Pakistan’s total debt comprised Rs. 54.5 trillion (68%) in domestic debt and Rs. 26 trillion (32%) in external debt. The report stated that the federal fiscal deficit of Rs. 7.1 trillion was the primary driver of rising debt, with 91% of the financing met through domestic sources.
The ministry highlighted a significant shift in the debt maturity profile, marked by a decline in short-term treasury bills and a greater share of long-term bonds and Sukuk. The average maturity of domestic debt improved from 2.8 years to 3.8 years, reducing rollover risks.
Among its achievements, the Ministry listed the first-ever prepayment of over Rs. 1.5 trillion in loans, the issuance of Green Sukuk, and the reduction of the external debt share in total debt from 38% to 32%, which helped mitigate foreign exchange risks.
Meanwhile, external debt grew by 6% year-on-year, reaching $91.8 billion by June 25. This increase was largely driven by disbursements from the IMF, a $1 billion commercial loan backed by the Asian Development Bank’s guarantee, and inflows from other multilateral institutions.
