KARACHI, PAKISTAN:
The State Bank of Pakistan (SBP), the country’s central bank, has released the latest details concerning the Federal Government’s debt portfolio, indicating a positive and constructive trend for the national economy. According to the SBP’s communiqué, the Federal Government managed to reduce its total debt by a significant Rs 852 billion during September 2025.
These figures reflect the government’s efforts toward economic strategizing and fiscal consolidation. At the end of September, the government’s total debt stood at Rs 76,605 billion, marking an encouraging step in the long-term objective of debt reduction.
Breakdown of Domestic and External Debt Reduction: The SBP’s statement detailed that the reduction was observed in both domestic and external borrowings. Specifically, the government’s domestic debt decreased by Rs 649 billion in September, while the external debt saw a reduction of Rs 203 billion.
Performance in Current Fiscal Year: This trend of debt reduction is not isolated to a single month. The communiqué highlighted that during the first quarter of the current fiscal year (FY 2025-26), the Federal Government’s total debt was reduced by a cumulative Rs 1,283 billion. These statistics underscore the government’s commitment to fiscal discipline and achieving long-term economic stability.
This development is particularly significant in the context of ongoing efforts to stabilize economic activity and rebuild investor confidence in the country.
