Pakistan's debt-to-GDP ratio falls to 68% as Finance Ministry disputes Rs20 billion daily borrowing interpretation

Profit reported that the Finance Ministry has disputed a claim that federal government debt rises by about Rs20 billion each day. The ministry argues that dividing the nominal increase by the number of days does not show fresh borrowing or the overall debt position. It said the ratio of debt to GDP eased to 68% by late FY26, down from 75% in FY23, while the pace of yearly debt expansion dropped to 7.7%.

External liabilities also looked lighter against the economy, as public-sector external debt went from a third of output in FY23 to 23% by late FY26. In dollar terms it climbed from $100 billion at the close of FY22 to $106.8 billion at the close of FY26, an average yearly rise of about $1.7 billion. Debt-servicing costs were estimated at Rs6.9 trillion in FY26, down from Rs8.9 trillion in FY25, and roughly Rs5.9 trillion of expensive debt was repaid early.

Foreign-exchange reserves, according to the ministry, reached $21.5 billion in September 2026 after bottoming out at $2.9 billion. Domestic debt now carries an average repayment period of roughly four years, compared with 2.7 years in FY24, which eases refinancing needs. Central government debt in August 2026 was also about Rs689 billion lower than in June 2026, the ministry noted.