Pak’s economy collapsing? Public debt rises to $286.8 bn; debt-to-GDP ratio hits 70%

Times of IndiaCenter-RightEN 2 min read 100% complete by TOI BUSINESS DESKOctober 25, 2025 at 06:13 PM

AI Summary

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Pakistan's total public debt reached $286.832 billion as of June 2025, a 13% increase from the previous year, according to the Ministry of Finance’s Annual Debt Review for FY25. The debt-to-GDP ratio rose to about 70%, up from 68%. Domestic debt increased by 15%, while external debt grew by 6% to $91.8 billion, supported by IMF disbursements and other multilateral inflows. Provincial debts also escalated, with Punjab being the largest borrower at $6.18 billion. Despite economic challenges, Pakistan's economy is recovering, with a projected growth of 2.7% for 2025 and an increase in external reserves to $16.64 billion by June 2025.

Key Topics & Entities

Baluchistan 40% Khyber Pakhtunkhwa 50% Pakistan-occupied Kashmir 50% Sindh 60% Punjab ×260% International Monetary Fund ×280% Pakistan ×9100%

Keywords

public debt 90% debt-to-gdp ratio 85% economic recovery 70% international monetary fund (imf) 65% fiscal consolidation efforts 60% external debt 55% current account surplus 50% nominal gdp growth 45% macroeconomic stability 45% external reserves 40%

Sentiment Analysis

Negative

Score: -0.20

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Source

Times of India

Political Lean

Center-Right (0.20)

Far LeftCenterFar Right

Classification Confidence

90%

Geographic Perspective

Pakistan

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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public debt debt-to-gdp ratio economic recovery international monetary fund (imf)fiscal consolidation efforts external debt current account surplus nominal gdp growth macroeconomic stability external reserves

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