Pakistan’s debt-to-GDP ratio fell to a six-year low of 70 percent due to faster nominal GDP growth fueled by higher inflation, as per State Bank of Pakistan data.
Moreover, SBP data indicates that Pakistan’s export growth has exceeded the increase in external debt over the past five fiscal years.
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In addition, the external debt to total exports ratio has significantly decreased to 253% in FY 2023-24, down from a peak of 314% in FY 2019-20. This improvement reflects a stronger performance in exports relative to the growth of external debt.
Furthermore, the total external debt and liabilities increased by 3.4 percent, reaching $130 billion by June 30, 2024. However, the external debt-to-export ratio remains elevated at 253%, highlighting ongoing challenges in balancing debt with export earnings.
