ISLAMABAD: Pakistan’s central government debt declined by Rs 765 billion as of August 2025, reflecting a notable improvement in both absolute terms and as a share of GDP, according to an update shared by Khurram Shehzad, Advisor to the Finance Minister, on X.
According to the data, total public debt decreased from Rs 80.8 trillion in July 2025 to Rs 80.0 trillion in August 2025, with the debt-to-GDP ratio remaining below 70 per cent.
Shehzad noted that the reduction reflects the government’s strong adherence to fiscal discipline, marked by controlled expenditures, prudent borrowing, and effective debt management practices.
A well-known economist and capital markets expert, Khurram Shehzad, was appointed Advisor to the Finance Minister in 2024 to assist in shaping fiscal policy, investor engagement, and debt management strategy. His X updates often highlight key macroeconomic indicators and progress on the government’s reform agenda.
Update: Pakistan's Public Debt Declines by Rs 765 Billion
Pakistan’s total central government debt fell by Rs 765 billion as of August 2025, marking a significant reduction both in absolute terms and as a percentage of GDP.
– This improvement reflects the government’s… pic.twitter.com/VYiljJisfr
— Khurram Schehzad (@kschehzad) October 7, 2025
In his latest post, Shehzad stated the debt decline underscores Pakistan’s macroeconomic stabilisation efforts and strengthens investor confidence in the government’s economic stewardship.
The ongoing fiscal strategy, he added, is focused on restoring long-term debt sustainability and rebuilding market trust through sound financial management and structural reforms.
The post was accompanied by an infographic citing official figures and reaffirming the government’s commitment to sustainable fiscal consolidation and responsible debt policy.
