Pakistan’s overall public debt has risen to USD 286.832 billion (PKR 80.6 trillion) as of June 2025, marking a nearly 13% increase from the previous year, as per official reports. The Ministry of Finance’s Annual Debt Review for FY 2025 revealed that the total public debt in Pakistan had reached PKR 80.6 trillion by the end of June 2025, with domestic debt at PKR 54.5 trillion and external debt at PKR 26.0 trillion. This uptick represents a 13% surge over the fiscal year 2024. The Debt-to-GDP ratio also climbed to around 70% by June 2025, up from 68% in June 2024, primarily due to slower-than-anticipated growth in nominal GDP in FY-2025, which led to reduced inflation and economic expansion pace, consequently elevating the debt-to-GDP ratio despite efforts towards fiscal consolidation.
In specific figures, domestic debt saw a 15% Year-on-Year increase, reaching PKR 54.5 trillion, marking the smallest annual surge in three fiscal years. External debt rose by 6% YoY, totaling USD 91.8 billion as of June 2025. This increase was driven by funds from the IMF, an ADB-guaranteed commercial loan of USD 1 billion, and inflows from other multilateral organizations. As of June 2025, 84% of Pakistan’s external public debt is held by the Federal Government, with provinces and sub-national entities owning the remaining 16%. Among the provinces, Punjab is the largest debtor with USD 6.18 billion (7%), followed by Sindh with USD 4.67 billion (5%), witnessing the most significant increase during the year. Khyber Pakhtunkhwa’s debt climbed to USD 2.77 billion (3%), while Baluchistan held USD 371 million and Pakistan occupied Kashmir USD 281 million.