ISLAMABAD: Pakistan’s total public debt has fallen from PKR 80,518 billion during June 2025 to PKR 79,146 billion in September 2025, a decline of over PKR 1,371 billion, Advisor to Finance Minister, Khurram Shahzad said here Monday .
The advisor posted on X that the first quarterly decline in 69 months (since Dec 2019), marks a notable shift in debt dynamics, adding it was the largest quarterly reduction ever in both absolute value and percentage decline (QoQ).
He said the achievement was the result of disciplined fiscal management and strategic use of surplus funds for early retirement of costly debt adding that it would help lower future borrowing needs, reduce refinancing and rollover risks, and strengthen medium-term financial stability.
The advisor said, it would also send a signal of improving policy credibility and investor confidence. Khurram said, over time, lower debt servicing can free fiscal space for development, social protection, and growth-enhancing priorities.
“This is a meaningful step toward a more sustainable and responsible fiscal trajectory,” he remarked
