KARACHI – Pakistan’s government successfully reduced its debt by Rs852 billion in September, according to a report released by the State Bank of Pakistan (SBP) on Thursday. This move comes as authorities aim to ease the country’s fiscal pressures.
The SBP data revealed that the government’s total debt stood at Rs76,605 billion by the end of September 2025. Domestic debt contributed to the majority of the reduction, falling by Rs649 billion during the month.
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External debt also decreased, dropping by Rs203 billion, signaling a combined effort to control the overall debt burden. Officials said this decline provides the government with some breathing space to manage ongoing economic challenges.
During the first quarter of the current fiscal year, Pakistan has managed to cut its debt by Rs1,283 billion, a development that economists believe could support macroeconomic stability if complemented by structural reforms.
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Experts caution, however, that while the reduction is a positive sign, Pakistan must continue implementing reforms and fiscal discipline to ensure long-term financial sustainability and prevent future debt accumulation.