Pakistan’s Debt-to-GDP Ratio Falls from Over 74% to 70%: Finance Minister

AlUla, Saudi Arabia, February 9, 2026 — Pakistan’s Federal Minister for Finance Muhammad Aurangzeb announced at the AlUla Conference in Saudi Arabia that the country’s debt-to-GDP ratio has declined to 70 percent, down from over 74 percent in the previous period.
Speaking to an international audience, the Finance Minister attributed the improvement to deliberate policy measures, particularly the extension of the maturity profile of government debt. This restructuring has significantly reduced short-term repayment pressures and eased liquidity constraints on the public finances.
“We have actively managed the debt structure by shifting from short-term to longer-term obligations,” Aurangzeb stated. “This has substantially lowered the immediate debt-servicing burden, resulting in the debt-to-GDP ratio coming down to 70 percent.”
He further highlighted ongoing reforms including broadening the tax base, increasing National Tax Number registrations, improving revenue collection, and creating a more conducive environment for foreign direct investment. The minister emphasized the importance of continued cooperation with Gulf partners, especially Saudi Arabia, for investment and economic collaboration.
The reduction in the debt-to-GDP ratio is being viewed as a positive signal of improving macroeconomic stability and is expected to strengthen Pakistan’s position in discussions with international creditors and investors.