ISLAMABAD: With a track record of 3.6 per cent increase in the overall public debt-to-GDP ratio to 74.5 per cent during FY25, the Ministry of Finance (MoF) on Friday hoped to reduce it to almost 70pc in the current year and to 63.3pc by FY28.

In its Debt Sustainability Analysis Report 2026-28, the MoF projected the public debt to remain sustainable over the medium term, supported by macroeconomic stability and continued fiscal consolidation, albeit with ‘a moderate risk arising from gross financing needs (GFN)’.

“As of the end of June 2025, the Public and Publically Guaranteed (PPG) debt-to-GDP ratio stood at 74.5pc, depicting a year-on-year increase of 3.6 percentage points from 70.9pc at the end of June 2024”, reads the report. It attributed the increasing debt-to-GDP ratio to the

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