Pakistan’s total government debt has increased by around Rs. 6,800 billion in just one year, according to recent reports. This sharp rise shows the growing financial pressure on the country and highlights ongoing economic challenges.
Experts say the increase in debt is mainly due to higher government spending compared to income. The country has been borrowing more to cover its budget deficit, which happens when expenses are greater than revenue.
Another major reason for the rise is the increasing cost of interest payments on existing loans. As debt grows, the amount needed to repay interest also increases, creating additional pressure on the national budget.
Pakistan has also relied heavily on both domestic and external borrowing to meet its financial needs. This includes loans from local banks as well as international financial institutions and friendly countries.
Analysts link the situation to slow revenue growth and a limited tax base. Because government income has not increased at the same pace as expenses, borrowing has become the main way to manage financial gaps.
The rising debt comes at a time when Pakistan is already working under IMF-supported economic reforms. These reforms aim to improve financial stability, but they also require strict control over spending and better tax collection.
Economists warn that if stronger fiscal discipline is not adopted, debt levels may continue to rise in the coming years. This could lead to higher repayment obligations and increased economic risks for the country.
