Interest payments on Pakistan’s public debt have skyrocketed to Rs8,600 billion, four times the amount six years ago.
According to the reports, rising overall borrowings and consistently high interest rates are to blame for the steep increase in the debt servicing bill.
As a result, interest payments now make up almost 8% of the nation’s annual Gross National Product (GNP), having doubled in portion.
The budgetary space available for vital sectors including development, health, and education has been drastically diminished by this concerning trend.
Although the situation is still dire, there are encouraging signs of improvement, according to Muhammad Sohail, CEO of Topline Securities.
“There may be some breathing room in the upcoming fiscal year as the interest rate has fallen from its peak and is currently at 11%,” he said.
Pakistan’s trade deficit decreased by 23% to $2.6 billion in May, according to a statement released by the State Bank of Pakistan (SBP) on Wednesday.
The SBP had published monthly and annual trade data, according to specifics.
According to the central bank, exports reached $2.6 billion in May 2025, a 17% increase.
At the same time, imports fell 8% to $5.2 billion.
Consequently, the May trade deficit dropped by 23% to $2.6 billion.
However, the total trade deficit grew by 11% to $24 billion during the first 11 months of the current fiscal year (July 2024 to May 2025).
