Pakistan’s debt burden has reached alarming levels, with every citizen now owing Rs 295,000 to national and international creditors. The staggering figure reflects the continuous reliance on borrowing by successive governments to manage the country’s financial obligations.
According to the Ministry of Finance, Pakistan’s total debt has surged by big margin, leading to increased financial pressure on the country’s economy.
Pakistan’s Debt Burden Grows Amid Economic Challenges
The Ministry of Finance recently reported that Pakistan’s total debt has risen by Rs 8.36 trillion, reaching a record high of Rs 71.24 trillion, this sharp increase reflects not only domestic borrowing but also the rising external debt. The current debt level now equates to 67.2% of the country’s GDP, posing concerns about Pakistan’s financial sustainability. Out of the total, domestic debt stands at Rs 47.16 trillion, while external debt has swelled to Rs 33.06 trillion, with big amounts owed to international institutions such as the International Monetary Fund (IMF). The IMF debt alone has increased by Rs 292 billion, bringing the total amount to Rs 2.33 trillion.
Growing Debt Demands Economic Reforms
The composition of Pakistan’s domestic debt shows a portion tied to government bonds, including Pakistan Investment Bonds (PIBs) and Sukuk bonds, prize bonds and foreign currency loans also add to the overall burden. The soaring debt indicates the urgent need for economic reforms to tackle the country’s fiscal challenges. Effective measures, such as boosting revenue and controlling spending, are necessary to prevent further deterioration of Pakistan’s financial health. Without immediate action, the nation’s debt burden will continue to climb, making it harder to achieve long-term stability and growth.
Read more: IMF Ready to Support Pakistan Amid Economic Reforms
