IMF Projects Pakistan’s Net Debt to Hit 65.6% of GDP in 2025 

The International Monetary Fund (IMF) has projected significant increase in government gross debt for Pakistan from 69.2 percent of GDP in 2024 to 71.4 percent in 2025.  The Fund in its latest report “Fiscal Monitor, Putting a Lid on Public Debt”, has projected an increase in the net debt for Pakistan from 63.5 percent of the GDP in 2024 to 65.6 percent in 2025.  Further the Fund has projected significant increase of 2.1 percent in the government expenditure for Pakistan from 19.3 percent of GDP in 2024 to 21.4 percent in 2025.  The government revenue is projected at 15.4 percent of GDP for 2025 and 15 percent for 2026 against 12.6 percent during the same period of 2024 and 11.5 percent in 2023.  The Fund has projected government primary balance at 2.1 percent for 2025 against 0.9 percent in 2024.  Further the government overall balance is projected at -6 percent for 2025 against -6.7 percent in 2024.  According to the report the country’s debt to average maturity in 2024 is estimated at 18.8 percent of GDP. There would be total gross financing need of about 22 percent of GDP in 2024.  Gross financing need is defined as the projected overall deficit and maturing government debt in 2024. The projected interest rate – growth differential 2024-29 is -3.6 percent while the nonresident holding of general government debt, 2022 is projected at 31.7 percent of total.