Qudsia Bano

Pakistan’s latest debt and liabilities snapshot, based on newly released data from the State Bank of Pakistan, reveals a steady buildup in both domestic and external obligations through June 2024, with projections extending into mid-2025. The figures reflect persistent financing needs, currency pressures and evolving government borrowing patterns. Government domestic debt stood at Rs47,160.21 billion in June 2024 and rose sharply to Rs54,471.52 billion by June 2025, before easing slightly to Rs53,423.60 billion in September 2025.

A similar upward trend was observed in government external debt, which increased from Rs21,753.65 billion in June 2024 to Rs23,181.38 billion by September 2025. Debt owed to the International Monetary Fund was recorded at Rs2,323.02 billion in June 2024 and stayed above the Rs2 trillion mark throughout the following year. Private external liabilities and borrowing by public sector enterprises further added to the overall burden.

Private external debt totaled Rs5,928.65 billion in June 2024 and edged up to Rs5,938.26 billion by September 2025. Meanwhile, the combined domestic and external debt of public sector enterprises, which exceeded Rs4 trillion in June 2024, remained elevated over the period. Total government debt, excluding IMF obligations, reached Rs65,104.66 billion in June 2024 and peaked at Rs73,266.06 billion by June 2025.

The broader measure of total debt and liabilities, covering domestic and external debt, intercompany loans and commodity operations, climbed from Rs86,728.58 billion in June 2024 to Rs94,180.47 billion in June 2025, before easing to Rs92,656.31 billion in September 2025. Debt ratios mirrored these rising trends. Gross public debt stood at 67.73 percent of GDP in June 2024, while total debt under the FRDLA definition was recorded at 61.89 percent of GDP.

By June 2025, gross public debt had risen to 70.79 percent of GDP, reflecting the combined impact of sustained borrowing and relatively slower nominal GDP growth. Government domestic debt as a share of GDP also increased from 44.83 percent in June 2024 to 47.89 percent a year later. Meanwhile, government deposits with the banking system declined from Rs6,141.26 billion in June 2024 to Rs4,780.42 billion by September 2025, pointing to shrinking fiscal buffers.

Commodity operations and public sector enterprise liabilities posted modest changes but remained sizable components of the overall debt profile. GDP at current market prices was recorded at Rs105,190.40 billion in June 2024 and is projected to rise to Rs113,747.72 billion by March 2025. The dataset highlights Pakistan’s persistent fiscal and debt challenges, with obligations increasing across nearly all major categories.

The trend through September 2025 indicates continued reliance on both domestic and external borrowing, underscoring the need for sustained reforms, stronger revenue mobilization and improved debt management to stabilize the country’s financial trajectory.

Credit: INP-WealthPk