{"id":26675,"date":"2025-12-05T11:46:51","date_gmt":"2025-12-05T11:46:51","guid":{"rendered":"https:\/\/gsrra.com\/?p=26675"},"modified":"2025-12-05T11:48:36","modified_gmt":"2025-12-05T11:48:36","slug":"pakistans-external-debt-to-gdp-ratio-drops-to-26-in-fy25","status":"publish","type":"post","link":"https:\/\/gsrra.com\/?p=26675","title":{"rendered":"Pakistan\u2019s external debt-to-GDP ratio drops to 26% in FY25"},"content":{"rendered":"\n<ul class=\"wp-block-list\">\n<li><em><strong>The country\u2019s external debt to GDP ratio stood at 31% a couple of years ago<\/strong><\/em><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"296\" height=\"170\" src=\"https:\/\/gsrra.com\/wp-content\/uploads\/2025\/12\/image-14.png\" alt=\"\" class=\"wp-image-26676\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/youtube.com\/channel\/UCFWx0mweS7ExXjs3s_wH0CQ\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/www.facebook.com\/BusinessRecorder\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/www.instagram.com\/businessrecorder\/\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/twitter.com\/brecordernews\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><a href=\"https:\/\/www.brecorder.com\/feeds\/latest-news\" target=\"_blank\" rel=\"noreferrer noopener\"><\/a><strong>State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Wednesday the country\u2019s external debt to GDP (gross domestic product) ratio had dropped to 26% in the fiscal year 2025 (FY25) compared to 31% a couple of years ago, reducing the nation\u2019s reliance on foreign financing in the wake of a jump in the inflows of workers\u2019 remittances.<\/strong><\/p>\n\n\n\n<p>In absolute numbers, \u201cPakistan\u2019s foreign debt has remained stagnant for the past three years at the June 2022 level [against assumption of a surge],\u201d the central bank chief said while talking to the media onthe  sidelines of its celebration of \u2019Pakistan Women Entrepreneurship Day 2025&#8242;.<\/p>\n\n\n\n<p>The foreign financing that Pakistan availed between FY22 and FY25 had been fully utilised to repay the old foreign debt obligations instead for building up foreign exchange reserves, he said.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.brecorder.com\/news\/40392575\/na-told-public-debt-skyrockets-by-rs93trn-in-fy25\" target=\"_blank\" rel=\"noopener\"><strong>NA told: Public debt skyrockets by Rs9.3trn in FY25<\/strong><\/a><\/p>\n\n\n\n<p>Earlier, the external financing rose by an average $6.4 billion a year from FY15 to FY22, he compared.<\/p>\n\n\n\n<p>To recall, the size of the domestic economy has risen to $407.10 billion in FY25 compared to $375 billion in FY22, it was learnt.<\/p>\n\n\n\n<p>The jump in inflows of workers\u2019 remittances in the past three years has reduced the nation\u2019s reliance on foreign funding.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"300\" height=\"168\" src=\"https:\/\/gsrra.com\/wp-content\/uploads\/2025\/12\/image-15.png\" alt=\"\" class=\"wp-image-26677\"\/><\/figure>\n\n\n\n<p>The\u00a0<a href=\"https:\/\/www.brecorder.com\/news\/40381354\/yoy-fy25-remittances-soar-27-to-383bn\" target=\"_blank\" rel=\"noopener\">inflows of workers\u2019 remittances<\/a>\u00a0surged to a record $38.3 billion in FY25 compared to $30.3 billion in FY24 \u2013 rising by 27% year-on-year basis, he mentioned, projecting the remittances would surpass $40 billion mark in the ongoing fiscal year 2025-26.<\/p>\n\n\n\n<p>Responding to a question, Ahmad acknowledged Pakistan\u2019s imports were on the rise, settling at $5.2 billion in November 2025. He, however, dismissed the notion that the current account deficit would cross the projected level of up to 1% of GDP.<\/p>\n\n\n\n<p>\u201cThe current account deficit would remain at the July 2025 projected level of 0-1% of GDP,\u201d he said.<\/p>\n\n\n\n<p>He said the bank financing to small and medium-sized enterprises (SME) had increased by Rs150 billion over the past year to Rs700 billion, showing the growth in the financing remains higher than the targeted one.<\/p>\n\n\n\n<p>Pakistan had targeted to double SME financing to Rs1.1 trillion in five years compared to Rs550 billion last year, he recalled.<\/p>\n\n\n\n<p>Reference Link:- <a href=\"https:\/\/www.brecorder.com\/news\/40395608\" target=\"_blank\" rel=\"noopener\">https:\/\/www.brecorder.com\/news\/40395608<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Wednesday the country\u2019s external debt to GDP (gross domestic product) ratio had dropped to 26% in the fiscal year 2025 (FY25) compared to 31% a couple of years ago, reducing the nation\u2019s reliance on foreign financing in the wake of a jump in the inflows [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[2],"tags":[25284,2076,25283,25285,483,5783],"class_list":["post-26675","post","type-post","status-publish","format-aside","hentry","category-sample-category","tag-debt-to-gdp-ratio","tag-economy-2","tag-external-debt","tag-fiscal-year-2025-2","tag-pakistan-2","tag-stable-economy-3","post_format-post-format-aside"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/26675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26675"}],"version-history":[{"count":1,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/26675\/revisions"}],"predecessor-version":[{"id":26678,"href":"https:\/\/gsrra.com\/index.php?rest_route=\/wp\/v2\/posts\/26675\/revisions\/26678"}],"wp:attachment":[{"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gsrra.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}