Pakistan’s External Debt Falling Since 2022, Reveals SBP Governor

State Bank of Pakistan (SBP) Governor Jameel Ahmad has revealed that the country’s external debt is steadily decreasing and has not recorded any increase since 2022—marking a positive shift in Pakistan’s economic outlook.

Speaking to the media after an event celebrating International Women Entrepreneurs Day in Karachi, the governor said that Pakistan’s debt-to-GDP ratio has fallen from 31% to 26%. He noted that from 2015 to 2022, the country’s external debt was rising at an average of $6.4 billion per year, but that trend has now been reversed.

Jameel Ahmad further stated that the current account deficit is expected to remain between 0% to 1% of GDP, despite an increase in imports—indicating that overall economic conditions remain under control.

Highlighting strong trends in foreign remittances, he announced that remittances are projected to cross $40 billion this year, compared to $38 billion last year.

The SBP governor also shared significant progress in women’s financing initiatives. Against the set target of Rs 50 billion (Nov 2024–Oct 2025), banks have already disbursed Rs 230 billion. SME financing has also climbed from Rs 550 billion to Rs 700 billion, reflecting renewed momentum in small-business growth.

He said the decline in external debt demonstrates that Pakistan’s economy is gradually stabilizing and that efforts to enforce financial discipline are beginning to pay off.