ISLAMABAD:

The federal government has projected a steady improvement in Pakistan's debt sustainability over the next three years, estimating that the debt-to-GDP ratio will fall from the current 70.8% to 60.8% under the IMF framework.

According to a new report released by the finance ministry, Pakistan's debt outlook for the medium term — from fiscal year 2026 to 2028 — remains stable and sustainable.

The report revealed that by June 2025, the country's total public debt had exceeded Rs84 trillion, marking an increase of more than Rs10 trillion over the past year. Despite the growing debt stock, financing needs are projected to remain high, standing at 18.1% through 2028.

The report further stated that Pakistan achieved savings of Rs888 billion in interest payments over the previous ye

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