Ministry of Finance has fulfilled another IMF condition by releasing the semi-annual report on public debt for FY 2024-25. According to the report, Pakistan’s total public debt surpassed Rs74 trillion by December 2024, with a Rs2,767 billion increase recorded between July and December 2024.
During this period, the government paid Rs5,142 billion in interest on these loans, with 90% of the interest payments made on domestic debt, which now stands at Rs49,883 billion. The country’s external debt reached Rs24,130 billion by the end of 2024.
Public debt composition: 67.4% domestic, 32.6% external.
Increase in debt (July–Dec 2024): Domestic debt rose by Rs2,723 billion, while external debt increased by Rs44 billion.
Debt maturity period: The average repayment period for domestic loans increased from 2.9 years to 3.4 years, while external loans remain at 6.2 years.
Fiscal deficit: Pakistan recorded a Rs1,538 billion fiscal deficit, which was financed through domestic borrowing.
Debt instruments: The government issued Pakistan Investment Bonds and Ijarah Sukuk for medium- to long-term financing.
Savings through buybacks: The government launched a Government Securities Buyback & Exchange Program, resulting in savings of Rs31 billion through the buyback of Rs1,000 billion in securities.
Economic improvements: The report highlights a decline in inflation, fiscal deficit, and current account deficit, while the exchange rate remained stable.
Primary balance: A Rs3,604 billion primary balance was recorded for July-December 2024.
Inflation rate: The average inflation rate during the period was 7.2%.
