ISLAMABAD (The Thursday Times) — Pakistan’s public and publicly guaranteed debt rose by Rs6.21 trillion in a year to Rs90.98 trillion at the end of June, a senior Finance Ministry official said, though it fell as a share of the economy.
The debt was Rs84.77 trillion in June 2025, so the rise is 7.3 percent. The debt-to-GDP ratio dropped by 2.6 percentage points, from 74.3 percent to 71.7 percent, because the economy grew faster in nominal terms.
Domestic debt rose by Rs4.93 trillion to Rs61.65 trillion, and external debt by Rs1.29 trillion to Rs29.35 trillion. Total public debt, excluding guarantees, stood at Rs86.7 trillion, with its ratio to GDP falling from 70.6 percent to 68.3 percent.
The official credited nominal growth in the economy, a federal primary surplus of Rs2.18 trillion and debt buybacks. Interest payments fell by Rs1.94 trillion, or 21.7 percent, to Rs6.95 trillion in the 2025-26 financial year.
Domestic debt remains exposed to swings in interest rates. Only 27 percent of government securities are on fixed rates, and while the average time to maturity is about 3.8 years, the average time to re-fixing is just 1.4 years. Around 60 percent of external debt is on fixed rates, and 90 percent of it is long-term.
Outstanding government guarantees totalled Rs4.28 trillion.
