‘Turnaround story next year’: Pakistan’s debt increases to PRs 76,000 billion; its FM claims economy on path to recovery
Pakistan’s total debt has risen to PRs 76,000 billion during the initial nine months of the present fiscal year, as revealed in its economic survey. The report indicates that the financially constrained nation is expected to achieve a growth rate of 2.7 per cent this year.During the Economic Survey 2024-25 release on Monday, Finance Minister Muhammad Aurangzeb stated that the Pakistani economy has shown signs of recovery over the past two years, with further stabilisation and strengthening observed in the current fiscal year.The survey, an essential pre-budget publication, outlines the government’s economic achievements for fiscal year 2024-25. The country’s financial calendar commences on July 1.According to the document released prior to the budget presentation, the government’s debt in the first nine months of the current fiscal year reached PRs 76,000 billion, comprising PRs 51,500 billion from domestic banks and PRs 24,500 billion from external borrowing.During a press briefing following the economic survey launch, Aurangzeb said that GDP growth increased from -0.2pc in 2023 to 2.5pc in 2024, according to a PTI report.Also Read | Economy in dire straits, India’s Indus Waters Treaty blow: Can Pakistan avoid the ‘begging bowl’?“This year, we announced a 2.7pc growth for 2025. This is a gradual recovery and the right way to go about it is to focus on sustainable growth,” he said.He contextualised Pakistan’s recovery against global economic performance, noting that worldwide GDP growth was 2.8 per cent.“The next fiscal year will be a turnaround story,” he claimed, indicating a budget that may aim to comply with IMF requirements.Discussing economic indicators, Aurangzeb noted that the current account showed a surplus of $1.9 billion in July-April FY25, supported by IT exports of approximately $3.5 billion.“Remittances are projected to reach $37-38 billion by year-end, up from $27 billion two years ago,” he said.Addressing macroeconomic metrics, the minister reported, “public debt and debt-to-GDP ratio was 68 per cent, which is now 65 per cent.”The forex reserves reached $9.4 billion as of June 30, 2024, marking an improvement from 2023’s position when Pakistan had only two weeks of import coverage.The foreign exchange reserves increased to $16.64 billion in 2025. The State Bank of Pakistan maintained $11.5 billion, whilst commercial banks held $5.14 billion.Also Read | 270 million pulled out of poverty! How Modi government achieved a remarkable dip in extreme poverty & what’s the road ahead? Explained
