The Economic Survey 2024–25 has revealed that Pakistan’s total government debt rose by Rs4,090 billion during the first nine months of the current fiscal year, from Rs65,105 billion in July 2024 to Rs69,195 billion by March 2025.
Despite this absolute increase in debt, the report highlighted a positive development -- the total government debt as a percentage of GDP actually fell from 68% to 65%, indicating an improvement in debt sustainability due to GDP growth.
According to the survey:
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Domestic debt stood at Rs51,518 billion as of March 2025.
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External debt was recorded at Rs24,489 billion during the same period.
Meanwhile, Pakistan's government granted massive tax exemptions amounting to Rs5,840 billion across various sectors during the current fiscal year, according to the Economic Survey 2024-25 released on Monday. The majority of these exemptions came in the form of sales tax waivers, aimed at stimulating economic activity and supporting key industries.
Also Read: Pakistan records 2.7% GDP growth in 2025: Fin min releases economic survey
The document highlights that sales tax exemptions alone accounted for over Rs4,253 billion, making it the largest category of relief extended to businesses and consumers. This included Rs87.95 billion in sales tax relief on mobile phones, a move likely intended to support digital access and telecom penetration across the country.
Additionally, income tax exemptions exceeded Rs800 billion, while customs duty exemptions amounted to more than Rs785 billion during the fiscal year.
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