Published on, Sept. 16 -- September 16, 2025 8:43 PM

ISLAMABAD: The Ministry of Finance has stated that Pakistan's debt position has improved when measured by international standards. In a detailed statement, the ministry explained that while absolute debt numbers are higher due to inflation, the more accurate measure is the debt-to-GDP ratio, which has declined from 74% in FY22 to 70% in FY25. This, it claims, reflects improved debt sustainability and responsible fiscal management.

The ministry attributed this improvement to early debt repayments, reduced interest rates, and stronger external accounts. It highlighted that nearly Rs2.6 trillion in commercial and central bank debt was repaid ahead of time, which reduced refinancing risks...