Pakistan’s Foreign Debt Hits $ 87B in 2024-25
Staff Report
Islamabad: Total public debt stood at Rs 76,007 billion by end-March 2025, with domestic debt at Rs 51,518 billion and external debt at Rs 24,489 billion (US$ 87 billion).
According to the Economic Survey 2024-25, during July–March FY2025, interest expense on public debt totaled Rs 6,439 billion, comprising Rs 5,783 billion on domestic debt and Rs 656 billion on external debt. Fiscal deficit financing was fully met through domestic markets, primarily via long-term domestic debt securities.
The government retired Rs 2.4 trillion in Treasury Bills, reducing short-term maturities. To diversify the investor base, a 2-year zero-coupon Pakistan Investment Bond (PIB) was introduced.Current Accounts Posts $1,9B Surplus in 2024-25
Alongside existing 3-year and 5-year Ijara Sukuk, a 10-year Sukuk instrument was launched with variable and fixed rates to expand Shariah-compliant options.
Under strategic Liability Management Operations, the government repurchased around Rs 1 trillion in government debt securities through a Buyback and Exchange Programme.
A 1-month Treasury Bill was introduced to address the shortterm liquidity needs of specific investors. Shariah-compliant Sukuk issuances reached approximately Rs 1.6 trillion.
External budgetary inflows totaled US$ 5.1 billion: US$ 2.8 billion from multilateral sources, US$ 0.3 billion from bilateral partners, US$ 1.5 billion from Naya Pakistan Certificates, and US$ 0.56 billion from commercial banks. The government received US$ 1.03 billion under the IMF Extended Fund Facility
