Pakistan’s public debt has reached a whopping Rs 76.007 trillion over the first nine months of the current fiscal year 2024-25, says the latest Pakistan Economic Survey 2024-25.
The survey presents a dismal picture of the nation’s fiscal health and discloses the increasing dependence of the government on borrowing for its fiscal requirements.
As of March 2025, the total stock of government debt is Rs 76.007 trillion. The domestic debt is Rs 51.518 trillion, and the external debt is Rs 24.489 trillion, indicating increasing pressure on Pakistan’s stability.
Read More: Economic Survey: Pakistan’s GDP grows 2.7% in FY 2024-25
Perhaps the most startling figure in the survey is Rs 6.439 trillion interest on public debt during this period. Of this, Rs 5.783 trillion has been incurred on servicing domestic loans and Rs 656 billion on external debt repayments.
Such enormous interest payments continue to put pressure on the federal budget and constrain room for development expenditure.
The Pakistan Economic Survey 2024-25 also highlights that the government raised Rs 1 trillion through government securities and issued Rs 1.6 trillion worth of Shariah-compliant Sukuk bonds during the first nine months of the fiscal year. These instruments have become a key part of debt management strategies.
Also Read: Budget 2025-26: Major tax cut likely for construction sector
In terms of foreign support, Pakistan had a total of $5.1 billion in foreign assistance. This is comprised of $2.8 billion from multilateral sources, $0.3 billion from bilateral sources, $1.5 billion from Naya Pakistan Certificates, and $0.56 billion from commercial banks. Additionally, under the IMF’s Extended Fund Facility (EFF) program, Pakistan obtained support worth $1.03 billion.
The persistent increase in Pakistan’s public debt is a cause of serious concern regarding the sustainability of prevailing fiscal policies. Economists have cautioned that if structural reforms are not implemented, the debt servicing burden will continue to strangle public finances, leaving less space for economic growth and development.
