Pakistan’s public debt expected to drop in FY25: ADB

July 18, 2024 (MLN): Pakistan’s public debt is forecasted to decline by 7 percentage points to 70% of GDP in fiscal year 2024–2025, Asian Development Bank highlighted in its July 2024 Asian Development Outlook (ADO).

However, it cautioned that interest payments are expected to require a staggering 62% of fiscal revenues, up from 41% in 2022–2023.

Across developing Asia, the average government debt-to-GDP ratio is projected to be around 47% this year, slightly lower than previously expected in April. This trend is supported by robust economic growth, which continues to offset upward pressure from primary deficits.

ADB has maintained Pakistan's inflation forecast at 15% for fiscal year 2024-25. Additionally, it has revised upwards its GDP growth forecast from the earlier April estimate of 2.8% for FY25, although the exact new figure was not specified in the report.

“Downward revisions for GDP growth in Bangladesh and Maldives over the forecast period are offset in 2024 by upward revisions for Bhutan, Nepal, and Pakistan, leaving the region’s 2024 growth forecast unchanged at 6.3%,” it said.

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