Public debt breaches limit by Rs17tr

Pakistan's total public debt remained Rs17 trillion higher than the maximum statutory limit set by Parliament to ensure fiscal discipline during the last fiscal year, but the government has still managed to reduce refinancing risks by extending the tenor of domestic loans. The Debt Policy Statement 2026 disclosed that, against the maximum permissible debt limit of 56% of Gross Domestic Product (GDP), public debt surged to 70.7%. The statement has been prepared for the information of the National Assembly under the requirement of the Fiscal Responsibility and Debt Limitation Act (FRDLA). Public debt was higher by Rs16.8 trillion, or 14.7% of GDP, compared to the limit set in the FRDL law for fiscal year 2024-25, the report showed.