The International Monetary Fund (IMF) reported that total global debt in 2024 remained above 235% of world GDP. According to the IMF Global Debt Database, private sector debt fell while public sector debt increased.
Private sector debt declined to 143% of GDP, the lowest level since 2015. This reduction was mainly due to a decrease in domestic borrowing and lower debt levels among non-financial companies. In contrast, public sector debt rose to nearly 93% of GDP, reflecting a global shift in borrowing trends.
The IMF report showed that total global debt reached $251 trillion. Private sector debt dropped to $151.8 trillion, while public sector debt increased to $99.2 trillion. In the United States, public debt rose to 121% of GDP, and in China it increased from 82% to 88%.
Public sector debt in advanced economies averaged 110% of GDP. Countries including Japan, Greece, and Portugal recorded declines, while the United Kingdom and France saw increases. The IMF linked rising government debt to global fiscal deficits, which stood near 5% of GDP.
In a report by the IMF, corporations in some of the developed economies had cut on borrowing as growth was poor. The rise in the government debt made the loans of the private sector more expensive or challenging. IMF suggested that governments should implement plausible medium-term fiscal policies to decrease the amount of state debt, reestablish equilibrium, and invest in the private sector.
The State Bank of Pakistan (SBP) reported that the debt-to-GDP ratio stood at 73.2% in the last fiscal year. External debt-to-GDP ratio was 25.7%, the lowest in seven years.
According to SBP data, Pakistan’s debt-to-GDP ratio in FY2024 was 70.3%, compared to 79% in FY2023. In earlier years, the ratio was 77% in FY2022, 74% in FY2021, 80% in FY2020, 79% in FY2019, and 65% in FY2018. The 10-year average remains close to 70%.
The external debt-to-GDP ratio was 25.7% in FY2025. In FY2024 it was 25.8%, FY2023 at 32.4%, FY2022 at 27%, and FY2021 at 27%. Previous years showed 31% in FY2020, 31% in FY2019, 23% in FY2018, 20% in FY2017, and 18% in FY2015.
The IMF global debt update and State Bank of Pakistan data reveal that the public sector borrowing is on the increase as compared to the slowdown in the private sector borrowing. In Pakistan, the ratio of debt to the GDP has also decreased over the last few years, with the external debt reaching the lowest mark in seven years.
