Debt-to-GDP ratio down to 83.5%: Finance Ministry

ISLAMABAD: The Ministry of Finance has said that the country’s total debt-to-GDP ratio has decreased to 83.5 per cent as of June 30, 2021 from 87.6 per cent on June 30, 2020.

Responding to some media reports, the statement added that both domestic and external debts have depicted a downward trend from last year.

It said the domestic debt declined to 55.1 per cent of GDP from 56 per cent last year. Similarly, the external debt-to-GDP ratio receded to 28.5 per cent from 31.6 per cent last year.

The statement said the best way to evaluate debt trend was through debt-to-GDP measure. However, the statement clarified that the debt has increased in line with the fiscal deficit.