Karachi: Pakistan’s debt-to-GDP ratio declined to 65.7% in September, signaling a reversal in the upward trajectory observed during the last fiscal year, according to the latest data in an article on November 12.
According to the details, this decrease brings the ratio to its lowest since June 2018, with the domestic debt-to-GDP ratio at 43.1% and external debt-to-GDP at 22.7%. However, the figures reflect a complex landscape, shaped by fluctuating borrowing needs, government debt restructuring, and evolving tax challenges. The central government’s total debt in September stood at PKR 69.6 trillion, showing a month-on-month reduction of 1.1% (or PKR 792 billion) from August’s figure of PKR 70.4 trillion.
This decline follows a significant increase in domestic debt, which surged by PKR 7.838 trillion over the past year, reaching PKR 47.536 trillion in September 2024, up from PKR 39.698 trillion in September 2023. Yet, the rise from June to September 2024 was more modest, with domestic debt increasing by only PKR 376 billion.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
