Pakistan, June 27 -- Pakistan's central government debt growth slowed to 5% in FY26, marking its lowest pace in 15 years, according to Finance Adviser Khurram Schehzad. The government said the trend reflects stronger debt sustainability and prudent fiscal management. The slowdown is expected to reduce financial risks and strengthen confidence in Pakistan's economic outlook.

Schehzad said comparisons based on absolute debt figures present a misleading picture of sovereign borrowing. He stressed that debt sustainability is measured through internationally accepted indicators, particularly the debt-to-GDP ratio. Citing State Bank of Pakistan data, he said central government debt stood at Rs81.9 trillion. He added that figures between Rs97 t...