Pakistan’s External Debt Declines; No Increase Since 2022, Says SBP Governor

Islamabad (Qudrat Daily) — The Governor of the State Bank of Pakistan, Jameel Ahmed, announced a decline in the country’s external debt, revealing that no new external borrowing has occurred since 2022.

Speaking to the media after an event at the State Bank marking International Women’s Day for Businesswomen in Karachi, he highlighted that the country’s debt-to-GDP ratio has fallen from 31% to 26%. Between 2015 and 2022, Pakistan’s external debt was increasing by an average of $6.4 billion annually.

Jameel Ahmed added that the current account deficit is expected to remain between 0% and 1% of GDP this fiscal year, despite a rise in imports, indicating that the current account remains under control.

He further stated that remittances are projected to exceed $40 billion this year, up from $38 billion in the previous fiscal year. The governor also noted that women’s financing targets of Rs 50 billion set for November 2024 to October 2025 were surpassed, with Rs 230 billion disbursed. Additionally, SME financing has increased from Rs 550 billion last year to Rs 700 billion.