Pakistan’s public debt falls by Rs765bn

October 08, 2025 (MLN): Pakistan’s total central government debt dropped by Rs765 billion as of August 2025, marking one of the most significant reductions in recent months, according to a statement shared by Advisor to the Finance Minister, Khurram Schehzad, on his official X (formerly Twitter) handle.

Schehzad stated that the decline highlights Pakistan’s progress toward macroeconomic stability, sttressing the government’s ongoing efforts to ensure fiscal discipline, controlled spending, and prudent debt management.

He noted that this development not only shows improved financial management but also signals growing investor confidence in the country’s economic outlook.

The reduction in public debt, both in absolute terms and as a percentage of GDP, is being seen as a positive step toward long-term fiscal sustainability.

Economists view this improvement as a result of the government’s consistent focus on revenue generation, expenditure control, and strategic borrowing, aimed at reducing dependence on external financing.

The Finance Ministry has reiterated that such fiscal measures are part of a broader plan to strengthen Pakistan’s economic fundamentals and restore investor trust, both locally and internationally.

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