In a recent session of the Senate, the Ministry of Finance presented detailed written figures outlining Pakistan’s debt, repayments, and interest payments for the fiscal year 2025. The data highlighted the growing debt burden on the national economy, along with a steady rise in interest servicing costs over recent years.
The briefing also included trade statistics presented by the Ministry of Commerce, covering exports, imports, and trade deficit figures for recent fiscal years.
Total Public Debt Reaches Rs. 80.5 Trillion in FY2025
According to the Ministry of Finance, Pakistan’s total public debt stood at Rs. 80.5 trillion in fiscal year 2025.
This total debt consists of:
- Domestic debt: Rs. 54.5 trillion
- External debt: Rs. 26 trillion
The data indicates that domestic borrowing continues to make up the larger share of Pakistan’s overall debt portfolio. The increasing reliance on internal borrowing reflects ongoing fiscal pressures and budget deficits.
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Debt Repayments Over the Years
The Ministry also provided a breakdown of debt repayments made during the past five fiscal years. The figures show significant repayments, although overall debt levels remain high.
Annual Debt Repayment Figures
- FY2021: Rs. 16.5 trillion
- FY2022: Rs. 23.2 trillion
- FY2023: Rs. 30.2 trillion
- FY2024: Rs. 28 trillion
- FY2025: Rs. 27.1 trillion
The highest repayment was recorded in fiscal year 2023 at Rs. 30.2 trillion. However, despite substantial repayments each year, the total debt stock has continued to grow due to ongoing borrowing requirements and fiscal deficits.
Rising Interest Payments Add Fiscal Pressure
One of the most concerning aspects of the Senate briefing was the sharp increase in interest payments over recent years. Debt servicing costs have risen significantly, placing additional strain on the federal budget.
Interest Payments by Fiscal Year
- FY2021: Rs. 2.7 trillion
- FY2022: Rs. 3.2 trillion
- FY2023: Rs. 5.7 trillion
- FY2024: Rs. 8.2 trillion
- FY2025: Rs. 8.9 trillion
The data shows that interest payments more than tripled from FY2021 to FY2025. In FY2025 alone, Pakistan paid Rs. 8.9 trillion in interest, reflecting the impact of higher borrowing levels and increased interest rates.
This rising cost of debt servicing reduces the fiscal space available for development projects, social welfare programs, and infrastructure investment.
Trade Performance: Exports, Imports, and Trade Deficit
Alongside debt data, the Ministry of Commerce presented trade figures for recent fiscal years, outlining Pakistan’s export performance, import bill, and trade deficit trends.
Fiscal Year 2022–23 Trade Figures
For FY2022–23:
- Exports: $27.7 billion
- Imports: $55.2 billion
- Trade deficit: $27.5 billion
The wide gap between exports and imports resulted in a significant trade deficit, highlighting structural challenges in boosting export competitiveness while controlling imports.
Fiscal Year 2023–24 Trade Figures
For FY2023–24:
- Exports: $30.6 billion
- Imports: $55.7 billion
- Trade deficit: $25.1 billion
Exports showed moderate growth compared to the previous year, while imports remained relatively stable. As a result, the trade deficit slightly narrowed to $25.1 billion.
Fiscal Year 2024–25 Trade Figures
For FY2024–25:
- Exports: $32 billion
- Imports: $58.3 billion
- Trade deficit: $26.3 billion
Although exports increased to $32 billion, higher imports pushed the trade deficit back up to $26.3 billion.
July–December 2025 Trade Performance
The Senate was also informed about trade figures for the first half of fiscal year 2025–26 (July to December 2025).
July–December 2025
- Exports: $15,135 million
- Imports: $34,475 million
- Trade deficit: $19,340 million
Comparison with July–December 2024
During July–December 2024:
- Exports: $16,631 million
- Imports: $30,902 million
- Trade deficit: $14,271 million
Key Changes
- Exports declined by 9% in July–December 2025 compared to the same period in 2024.
- Imports increased by 12%.
- The trade deficit widened by 36%, rising from $14.27 billion to $19.34 billion.
This sharp increase in the trade deficit during the first half of FY2025–26 signals renewed pressure on Pakistan’s external account.
Economic Implications
The combined data on debt, interest payments, and trade performance paints a challenging economic picture:
- High public debt at Rs. 80.5 trillion continues to weigh heavily on fiscal stability.
- Rising interest payments are consuming a growing share of government revenues.
- Persistent trade deficits indicate structural imbalances in exports and imports.
The growing cost of debt servicing, along with widening trade gaps, could impact currency stability, inflation, and development spending if corrective economic measures are not implemented.
Conclusion
The Senate briefing by the Ministry of Finance and Ministry of Commerce provides a detailed snapshot of Pakistan’s fiscal and trade position in FY2025. With total debt reaching Rs. 80.5 trillion and interest payments rising to Rs. 8.9 trillion, managing fiscal sustainability remains a major challenge.
Meanwhile, fluctuating export growth and increasing imports continue to widen the trade deficit, particularly in the first half of FY2025–26.
Economic analysts suggest that sustained fiscal discipline, export expansion strategies, and structural reforms will be essential to stabilize Pakistan’s economy in the coming years.
