KEY PONTS
- Pakistan’s total public debt fell from PKR 80,518 billion in June 2025 to PKR 79,146 billion in September 2025.
- The decline reflects disciplined fiscal management and strategic use of surplus funds for early retirement of costly debt.
- The reduction is expected to lower future borrowing needs, reduce refinancing and rollover risks, and strengthen medium-term financial stability.
ISLAMABAD: Pakistan’s total public debt has declined by over PKR 1,371 billion in the first quarter of FY26, falling from PKR 80,518 billion in June 2025 to PKR 79,146 billion in September 2025, Advisor to the Finance Minister, Khurram Schehzad, announced on Monday.
Posting on X, Schehzad highlighted that this is the first quarterly decline in nearly six years, a historic move, which also represents the largest quarterly reduction ever in Pakistan’s debt history, both in absolute and percentage terms.
According to the Advisor, the achievement is the result of disciplined fiscal management and the strategic use of surplus funds to retire expensive debt early.
“This helps lower future borrowing requirements, reduces refinancing and rollover risks, and strengthens medium-term financial stability,” he added.
Pakistan’s Public Debt Declines by Over PKR 1,371 Billion
Pakistan’s total public debt has fallen from PKR 80,518 billion (June 2025) to PKR 79,146 billion (September 2025) — a decline of over PKR 1,371 billion.
This is as follow:
– First quarterly decline in 69 months (since… pic.twitter.com/grg0IRYpfl
— Khurram Schehzad (@kschehzad) November 17, 2025
Schehzad further noted that the decline signals improving policy credibility and investor confidence, and over time, lower debt servicing can free fiscal space for development, social protection, and growth-enhancing priorities.
The announcement was tagged to relevant government institutions, including the Ministry of Finance, State Bank of Pakistan, Prime Minister’s Office, and the Ministry of Information & Broadcasting, indicating close government coordination on debt management.
