September saw additional debt reduction by the government: State Bank

By the end of September 2025, the government’s overall debt was Rs76,605 billion, according to the SBP.

According to the figures, domestic debt decreased by Rs649 billion, providing the government with some breathing room in the face of persistent budgetary constraints.

Additionally, the report shows that throughout the month, external debt decreased by Rs203 billion.

The government has lowered its debt by Rs1,283 billion overall in the first quarter of the current fiscal year, which officials believe will lessen the strain on the country’s economy.

Although this declining tendency offers some promise, economists say Pakistan must continue its reforms in order to maintain stability over the long run.