ISLAMABAD, April 10: Pakistan’s total public debt stood at Rs75.3 trillion as of February 25, 2025, comprising Rs51 trillion in domestic debt and Rs24.3 trillion in external borrowings, Finance and Revenue Minister Senator Muhammad Aurangzeb informed the National Assembly.
Responding to a written question, the finance minister clarified that the figure includes debt incurred by both the federal and provincial governments and obligations to the International Monetary Fund (IMF), all of which are serviced through the consolidated funds of the government.
This total constitutes what is officially classified as “Total Public Debt.”
He explained that the government’s borrowing requirements are mainly driven by the size of the fiscal deficit, as loans are primarily acquired to bridge this gap.
Historically, interest payments have been the dominant contributor to the deficit.
However, the minister noted that the government’s ongoing fiscal consolidation and stabilisation initiatives are likely to keep interest payments for the full fiscal year 2024-25 within the allocated budget, helping contain the deficit at a more sustainable level.
While borrowing needs will remain, the growth in public debt is expected to stay within manageable limits, he added.
As of January 2025, total public debt was recorded at Rs74.4 trillion, including Rs50.2 trillion in domestic debt and Rs24.2 trillion in foreign obligations.
Breakdown of Domestic Debt
Providing details on domestic borrowings as of February 2025, Senator Aurangzeb revealed that long-term debt accounts for Rs42.72 trillion.
Of this, Rs39.43 trillion is classified as permanent debt, comprising Rs38.55 trillion in federal government bonds.
Specifically, the government has issued Rs32.56 trillion worth of Pakistan Investment Bonds (PIBs), Rs5.93 trillion in Ijara Sukuk, and Rs399.4 billion in Price Bonds.
Additionally, unfunded debt stands at Rs2.91 trillion, while Rs2.83 trillion has been mobilised through National Savings Schemes, excluding prize bonds.
Short-term debt is currently at Rs8.23 trillion, which includes Rs8.136 trillion in Market Treasury Bills (MTBs) and Rs94.4 billion in MTBs used for cash replenishment.
External Debt Composition
On the external front, the minister said that long-term foreign debt stands at Rs21.73 trillion, while short-term foreign debt amounts to Rs288.6 billion.
Pakistan also owes Rs2.315 trillion to the IMF as part of its multilateral obligations.
Subsidies and Grants for FY2024-25
In a separate written response, the finance minister informed the House that the federal government disbursed Rs237.31 billion in subsidies to various sectors during the first six months of the current fiscal year (2024-25).
Of this, the largest allocation—Rs218.31 billion—was directed to the power sector.
Other allocations include Rs2.4 billion to the Pakistan Agricultural Storage & Services Corporation (PASSCO), Rs3.81 billion for wheat subsidies in Gilgit-Baltistan, Rs6.9 billion under a refinance facility, and Rs5.79 billion for housing finance initiatives.
When detailing the grants extended to government bodies, Senator Aurangzeb reported that a total of Rs644.17 billion had been allocated in grants during the same period.
The Benazir Income Support Programme (BISP) received the largest share with Rs232.25 billion, followed by Rs359.53 billion distributed among other entities.
Higher Education Commission (HEC) was granted Rs22.59 billion, Pakistan Railways received Rs26.66 billion, and Pakistan Bait-ul-Mal was allocated Rs3.14 billion.
As for loans, Rs48.32 billion was extended to the National Highway Authority (NHA), Rs7.48 billion to the National Transmission and Despatch Company (NTDC), Rs5.5 billion to GENCO, and Rs210 million to other organizations.
Bilateral Trade and FATA Development Funds
In response to supplementary questions, Parliamentary Secretary for Commerce Zulfiqar Ali Bhatti informed the Assembly that bilateral trade between Pakistan and Saudi Arabia reached $5.7 billion in the last fiscal year.
He also noted that following Brexit, Pakistan successfully negotiated duty-free access for over 94 percent of its exports to the United Kingdom.
Later, addressing a calling attention notice, Parliamentary Secretary for Finance and Revenue Saad Waseem Sheikh told lawmakers that the federal government has disbursed over Rs600 billion to the Khyber Pakhtunkhwa government for the development of the formerly Federally Administered Tribal Areas (FATA).
He emphasized that this funding was provided in addition to KP’s regular share under the National Finance Commission (NFC) Award.
