ISLAMABAD: Pakistan’s total central government debt has registered a massive drop of 765 billion rupees as of August this year (2025).
According to statistics shared by Advisor to Finance Minister Khurram Schehzad on his X handle, this decline underscores progress toward macroeconomic stability.
He said it also reflects the government’s commitment to fiscal discipline, driven by controlled expenditures, and prudent debt management practices.
The development came at the time when the federal government formed an 18 member high level committee to lead negotiations under the Pakistan Saudi Arabia Economic Framework.
A corridor aligned with Vision 2030 targets investment and jobs
The proposed Pakistan Saudi Economic Corridor is modelled on CPEC and aims to knit South Asia and the Middle East. Through trade routes, capital flows, and technology transfer.
It aligns with Saudi Arabia’s Vision 2030 and Pakistan’s priorities, so officials expect foreign investment, skilled jobs, and faster infrastructure upgrades.
Moreover, the plan adds environmental protection and climate stability to the traditional focus on defense and energy.
Early scoping will prioritise corridors that connect ports, industrial zones, and agriculture value chains and minerals projects.
An eighteen member committee leads rapid talks and oversight
Meanwhile, Prime Minister Shehbaz Sharif has named Senator Musadik Masood Malik, the Federal Minister for Climate Change, and SIFC National Coordinator Lt. Gen. Sarfraz Ahmed as co chairs.
Other members include the ministers for Economic Affairs, Commerce, Energy, National Food Security, Information Technology, and Communications. Plus senior officials from the State Bank, FBR, SECP, and the embassy in Riyadh.
Importantly, SIFC will fast track logistics, with one hour travel clearances and performance reports every fifteen days.
Near term agenda spans oil, agriculture, and a narrower trade gap
Looking ahead, Pakistan will seek renewed Saudi investment in oil and agriculture on a buy back model while raising exports to narrow a three billion dollar trade deficit.
The long delayed refinery remains on the table, alongside proposals for data centres, logistics, and green projects.
Finally, last month’s Strategic Mutual Defense Agreement adds political weight, and a late October visit by the prime minister is expected to lock in initial deals.
