Pakistan’s debt-to-GDP ratio is estimated to have reached 68.5 percent by June 2026, according to information presented before the National Assembly, while the country’s central government debt excluding International Monetary Fund liabilities stood at Rs77.9 trillion during the latest 11-month period of fiscal year 2025-26.
The figures were disclosed by Finance Minister Senator Muhammad Aurangzeb in a written reply to a question submitted by Shahida Begum through the National Assembly Secretariat. The government also stated that the amount of total public deposits had not yet been published by the State Bank of Pakistan. Based on public deposits of Rs7.9 trillion recorded at the end of March 2026, the debt-to-GDP ratio was estimated at 62.2 percent for FY2025-26.
According to the Finance Ministry’s data, domestic debt accounted for Rs54.5 trillion of the central government’s total debt, while external debt stood at Rs23.4 trillion. The figures exclude debt owed to the IMF, as specified in the government’s response.
Central government debt increased by Rs4 trillion during the 11-month period of FY2025-26. The Finance Ministry described this increase as the slowest pace of debt accumulation recorded over an 11-month period in the past 15 years. The government has attributed the comparatively slower increase to changes in its debt management approach and improving macroeconomic conditions.
The Finance Ministry said the government’s shift towards longer-tenor debt instruments, combined with improved macroeconomic stability, had helped contain debt-servicing costs. Interest expenditure during the first nine months of FY2025-26 amounted to Rs4.9 trillion, compared with Rs6.4 trillion during the same period of FY2024-25.
This represents a year-on-year decline of approximately 23 percent in interest expenditure. The reduction in interest costs has provided some relief to the government’s fiscal position at a time when debt servicing remains one of the largest components of public expenditure.
The ministry stated that the decline in the debt-to-GDP ratio was becoming evident as the government continued implementing fiscal consolidation and debt-management measures. It also clarified that the latest Debt Policy Statement did not establish a separate debt-reduction path. Instead, the statement assesses actual debt performance against the trajectory prescribed under the Fiscal Responsibility and Debt Limitation Act.
The National Assembly was also provided with updated information on Pakistan’s export and import position. Commerce Minister Jam Kamal Khan said Pakistan’s exports amounted to $30.7 billion in 2023-24 before increasing to $32 billion in 2024-25. Exports subsequently declined to $30.1 billion during 2025-26.
Imports, meanwhile, continued to rise throughout the three-year period. The country imported goods worth $59.9 billion in 2023-24, with the figure increasing to $64.5 billion in 2024-25 and reaching $69.6 billion in 2025-26. The figures were provided in response to a question submitted by MNA Shahida Rehmani.
Textile exports, one of Pakistan’s major export categories, were also discussed in the National Assembly. Responding to a question from MNA Sehr Kamran, the commerce minister said textile exports stood at $16.65 billion, $17.88 billion and $17.94 billion over the last three years, respectively. The figures show a gradual increase in textile export earnings despite the decline in overall exports recorded during FY2025-26. The National Assembly was further informed about government vehicle fuel expenditure. Vehicles operated by ministries, divisions and subordinate departments consumed fuel worth Rs21.77 billion over the last five years.
The disclosures collectively highlight the government’s debt position, debt-servicing costs, trade performance and public-sector operating expenditure. While the Finance Ministry pointed to slower debt accumulation and lower interest expenditure as signs of improving fiscal management, the continued rise in imports and the decline in overall exports remain significant considerations for Pakistan’s external and fiscal position.
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