Pakistan’s debt-to-GDP ratio falls to lowest level in over six years

ISLAMABAD: Pakistan’s Debt-to-GDP ratio has fallen to its lowest point in over six years, reaching 65.7% as of September 2024. This marks a significant improvement, with the ratio last recorded at this level in June 2018.

Brokerage firm Arif Habib Limited (AHL) reported that the Domestic Debt-to-GDP ratio stands at 43.1%, while the External Debt-to-GDP ratio is at 22.7%.

Data released by the State Bank of Pakistan (SBP) further revealed that the total public debt stock of the federal government stood at Rs. 69.570 trillion in September 2024, reflecting a 1.1% decrease from the previous month.

This drop in the debt ratio signals a positive shift in Pakistan’s fiscal health, as the country continues efforts to manage its public finances and reduce reliance on external borrowing.