Pakistan's debt rises by 6.7pc to exceed Rs7.6tn

Islamabad: Pakistan’s public debt increased by 6.7 percent during the first 9 months of fiscal year 2025, exceeding Rs760 trillion.

According to the Economic Survey 2024-25, this includes domestic debt of Rs515.18 trillion and external debt of Rs244.89 trillion.

Mark-up expenditure consumed 66 percent (Rs6,439 billion) of the full-year budget estimate, the majority of which (Rs5,783 billion) was on domestic debt.

The government spent Rs6.439 trillion on debt servicing in the July-March period, which was lower than the same period last year, mainly due to an increase in the primary surplus.

The government relied on long-term instruments such as Pakistan Investment Bonds (PIBs) and Sukuk to extend the maturity of the debt and reduce short-term payment pressure.

Under this strategy, Treasury Bills (T-bills) worth Rs2.4 trillion were retired, while two-year zero-coupon PIB and 10-year Sukuk were also introduced.

External debt stood at US$ 87.4 billion at the end of March 2025, showing an increase of about US$ 883 million in the first 9 months of the current fiscal year.

The bulk of Pakistan’s external debt consists of long-term and concessional loans, mostly obtained from multilateral and bilateral partners.