Pakistan’s total public debt stood at Rs 76,007 billion by the end of March 2025, marking an increase of Rs 4,761 billion (6.7%) from Rs 71,246 billion at the close of the previous fiscal year. The rise in debt reflects a substantial increase in both external and domestic liabilities, according to the Economic Survey for 2024-25.
External public debt was recorded at $87.4 billion by the end of March 2025, showing a relatively modest increase of $883 million during the first nine months of the current fiscal year.
In comparison, external debt had increased by $2.6 billion during the same period last year. This total external debt figure excludes liabilities of foreign exchange, public sector enterprises (PSEs), banks, and the private sector.
As per data from the State Bank of Pakistan (SBP), the country’s total external debt and liabilities reached $130.31 billion by the end of March 2025, including government external debt, short-term debt from the International Monetary Fund (IMF), and liabilities related to foreign exchange, PSEs, banks, and the private sector.
Domestic debt stood at Rs 51.5 trillion at the same point, reflecting an increase of Rs 4.8 trillion from Rs 47.16 trillion recorded in June 2024. The increase in public debt during the fiscal year is attributed to factors such as the federal primary deficit of Rs 2,415 billion, Rs 6,439 billion in interest payments on debt, and Rs 738 billion from exchange rate adjustments and other impacts.
The government’s external debt, which makes up the majority of the total, is predominantly long-term, with $78.18 billion in long-term debt and $950 million in short-term debt. Multilateral loans, including those from the World Bank and the Asian Development Bank, make up the largest share of long-term debt, amounting to $40.47 billion, or about 51.8% of the total. The Paris Club debt is $5.94 billion, while bilateral loans from non-Paris Club countries stand at $17.86 billion. Outstanding loans from foreign commercial banks account for $5.85 billion.
In the first nine months of FY 2025, external debt disbursements totaled $5.07 billion, with the largest portion coming from multilateral sources ($2.8 billion), followed by commercial and other sources ($2.01 billion). Debt repayments during the period amounted to $5.64 billion, with multilateral creditors receiving the largest share of $2.83 billion.
Interest payments on foreign debt amounted to $2.66 billion, with multilateral creditors receiving the bulk of these payments at $1.32 billion.
