Pakistan’s ballooning debt has hit an eye-watering new record, raising new fears about the nation’s fiscal well-being.
The federal government’s total debt reached an all-time high of Rs76.045 trillion by the end of May 2025 — a record for the nation, the State Bank of Pakistan reported in its latest report.
This sharp increase in borrowing is intensifying worries surrounding the Pakistan national debt crisis, which analysts say is now posing serious risks to the already fragile economy. The report reveals that domestic debt accounts for Rs53.460 trillion, while external debt stands at Rs22.585 trillion.
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Alarmingly, the debt went up by Rs1.109 trillion in May alone, showing the government’s continued dependence on borrowing to finance duties.
During a 12-month span — May 2024 to May 2025 — Pakistan’s overall debt has surged by Rs8.312 trillion. A month ago, in April 2025, overall debt stood at Rs74.936 trillion, reflecting a sharp hike on a monthly basis.
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The report also highlights the trend in debt for the present fiscal year. During the initial 11 months of FY2024-25, the federal debt has increased by Rs7.131 trillion, as against Rs68.914 trillion as of June 2024.
Economists view this surge as a serious red flag. “The Pakistan national debt crisis is no longer a looming threat — it’s already here,” one analyst warned. “We’re adding over a trillion rupees in debt in a single month. That’s not sustainable.”
