Pakistan’s public debt surged by Rs 9.3 trillion during the fiscal year 2024-25, an alarming rise equal to Rs 25.4 billion per day, the National Assembly was informed on Thursday. The figures have raised serious concerns over financial discipline and debt sustainability.
According to the written reply submitted by Finance Minister Muhammad Aurangzeb, the country’s total public debt reached Rs 80.5 trillion by June 2025, reflecting an annual increase of Rs 9.3 trillion. Under the Fiscal Responsibility and Debt Limitation Act (FRDLA), which uses a narrower definition of public debt, the increase stood at Rs 8.2 trillion, equivalent to Rs 22.3 billion per day.
As a result, Pakistan’s public debt-to-GDP ratio climbed to 70.8% in FY 2024-25, compared to 67.8% in the previous fiscal year. Under the FRDLA definition, the ratio was reported at 64.4%.
Government Measures for Debt Stability
The finance minister outlined several steps taken to manage and stabilize the growing debt burden:
- Achieving a primary surplus for two consecutive fiscal years to reduce reliance on deficit financing
- Shifting borrowing towards long-term securities to minimize refinancing risks
- Launching Pakistan’s first-ever sovereign debt buyback program
During FY 2024-25, the government repurchased Rs 1.5 trillion worth of debt, while an additional Rs 1.1 trillion buyback is planned for FY 2025-26.
Aurangzeb further informed the House that the average maturity of domestic debt had been extended from 2.8 years to 3.8 years, resulting in savings of over Rs 880 billion in interest payments during FY 2024-25.
CPEC Progress Update
Meanwhile, Minister for Planning Ahsan Iqbal confirmed that eight China-Pakistan Economic Corridor (CPEC) projects, with a combined cost of $759.56 million, are currently under implementation.
