KARACHI: While the foreign debt servicing remained almost the same in the budget for fiscal year 2025-26, the domestic debt target for the same year has been slashed by over Rs1.5 trillion compared to the last year.
The burden of domestic debt has significantly been reduced due to a sharp decline in the interest rate, which fell from 22 per cent in June 2024 to the currently prevailing 11pc.
Interestingly, Finance Minister Muhammad Aurangzeb said the government saved Rs850 billion through refinancing while the central government’s debt increased by Rs5.36tr to Rs52.52tr in April 2025. For contrast, the central government’s debt had reached Rs47.16tr in June 2024.
According to the budget document,…
