KARACHI: State Bank of Pakistan Governor Jameel Ahmad announced that Pakistan’s external debt-to-GDP ratio has improved significantly to 26% in FY25 from 31% a few years ago, mainly due to strong growth in workers’ remittances and a larger economy.
Speaking on the sidelines of “Pakistan Women Entrepreneurship Day 2025”, he revealed that total foreign debt has remained stagnant at June 2022 levels for the past three years, with all new external financing used solely to repay maturing obligations rather than building reserves.
Remittances hit a record $38.3 billion in FY25, up 27% from $30.3 billion in FY24, and are projected to cross $40 billion in FY26. The GDP has expanded to $407.1 billion from $375 billion in FY22.
The Governor reiterated that the current account deficit will stay within the projected 0–1% of GDP despite rising imports ($5.2 billion in November 2025). SME financing rose by Rs150 billion to Rs700 billion in the last year, keeping the sector on track to reach the Rs1.1 trillion target in five years.