Pakistan central debt growth slows to 15-year low

Islamabad: Pakistan’s central government debt growth has slowed to its lowest level in 15 years, rising by only 5% year-to-date in FY26, compared with 23% in FY23, according to official data shared by the Finance Adviser. Officials attribute this improvement to better fiscal management, longer debt maturities, and partial repayment of loans. The central debt currently stands at Rs 81.9 trillion, with a debt-to-GDP ratio around 68%. Analysts note that reduced growth in central debt and improved sustainability measures may ease financial pressure, enhance investor confidence, and strengthen Pakistan’s economic stability. Can continued fiscal prudence further stabilize the country’s public finances?