Pakistan’s national debt returns to 2018 levels, notable reduction in debt ratio

Broking firm Arif Habib Limited (AHL) reported that the domestic debt-to-GDP ratio is 43.1%, while the external debt-to-GDP ratio is 22.7%.

Data released by the State Bank of Pakistan (SBP) also indicates that the total public debt of the federal government as of September 2024 was PKR 69.570 trillion, showing a 1.1% decrease compared to the previous month.

This reduction in the debt ratio signals a positive shift in Pakistan’s fiscal health as the country continues its efforts to manage public finances better and reduce reliance on external debt.