KARACHI: Pakistan’s government debt growth slowed down to its lowest in 15 years in the fiscal year 2025-26 ending in June, the country’s finance adviser said on Friday, reflecting improved fiscal management and lower risks to the economy.
Pakistan has long relied on loans to help bridge persistent gaps in public finances and foreign exchange reserves, driven largely by a narrow tax base, chronic trade deficits, rising debt-servicing costs and repeated balance-of-payments pressures.
Finance Adviser Khurram Schehzad denied reports suggesting Pakistan’s central government debt stood at Rs97-100 trillion (up to $359 billion), saying the figure also included private sector liabilities which were not taken into account.
Citing…