Federal government reduces debt by Rs 852 billion in September, State Bank reports
The State Bank of Pakistan has stated in its latest report that the federal government has significantly reduced its debt during September 2025, which is one of the largest monthly decreases of the current fiscal year.
According to the report, the government’s total debt decreased by Rs 852 billion in the month of September, after which the total debt came to Rs 76,605 billion at the end of the month.
The report states that the government’s local debt decreased by Rs 649 billion while external debt decreased by Rs 203 billion.
According to the State Bank, the federal government’s total debt has decreased by Rs 1,283 billion in the first quarter of the current fiscal year. Experts say that if this trend continues, the government’s fiscal pressure may ease in the coming months.
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