ISLAMABAD: Pakistan’s total public debt rose by 13 per cent to Rs80.6 trillion by the end of FY25, driven mainly by a fiscal deficit of Rs7.1tr and slower-than-expected GDP growth, according to the Ministry of Finance (MoF).

In its Annual Debt Review 2025, the MoF said the debt-to-GDP ratio increased to 70pc, up from 68pc a year earlier. This was attributed to a lower nominal GDP growth rate, resulting from reduced inflation, which limited economic expansion and pushed the ratio higher despite efforts at fiscal consolidation.

The MoF noted that while interest expenses rose by 9pc year-on-year, this increase was significantly lower than the 43pc recorded in the previous fiscal year. Total domestic debt stood at Rs54.5tr, and external debt at Rs26tr — both reflecting a 13pc annual increase.

The average time to maturity (ATM) for domestic debt........

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