Domestic, external debt reaches Rs75.3 trillion in February 2025, Finance Ministry reports

The Finance Ministry has informed the National Assembly that Pakistan’s total domestic and external debt stood at Rs75.3 trillion in February 2025. This marked an increase from Rs74.4 trillion in January 2025, and Rs74 trillion in December 2024. 

The debt comprises Rs52.2 trillion in domestic debt and Rs24.2 trillion in external debt in January, and Rs21 trillion in domestic debt and Rs24.3 trillion in external debt in February.

The Finance Ministry explained that government borrowing is largely driven by the fiscal deficit, with public debt primarily used to finance this deficit. Interest expenses have historically been the main contributor to the fiscal deficit. 

However, due to ongoing fiscal consolidation and economic stabilization efforts, the government expects interest expenses for FY25 to stay within budgeted limits, which should help keep the fiscal deficit under control. Although the need for additional loans persists, the government aims to keep the growth in public debt at manageable levels.

In a separate written response, the Federal Board of Revenue (FBR) provided updates on taxpayer registration. The number of registered taxpayers, including businesspersons and companies, has reached 12.5 million. 

Over the last three years, the number of registered business taxpayers has increased by 5.3 million. Most registered taxpayers are from Punjab, with 8.2 million, followed by 2.876 million in Sindh, 818,872 in Khyber Pakhtunkhwa, 467,562 in Islamabad, and 221,479 in Balochistan.

The FBR also reported that Rs820 billion was collected from government and non-government salaried taxpayers over the last three years. In FY2023-24, Rs368 billion was collected, with Rs88 billion from government employees and Rs280 billion from private sector employees. The previous year, FY2022-23, saw Rs264 billion in tax collection, with Rs55 billion from government employees and Rs209 billion from private sector workers. 

Tax collection from salaried individuals has steadily increased, with government employees contributing Rs43 billion and private employees contributing Rs145 billion in FY2021-22. Over the last three years, the number of government taxpayers has risen by 194,000, while private sector taxpayers have increased by 5.5 million.