Pakistan is expected to spend nearly Rs. 45,000 billion on interest payments for public debt over the next five years, according to official projections. The figures highlight the growing financial burden created by the country’s rising debt levels and increasing borrowing costs.
Government documents indicate that debt servicing will remain one of the largest expenditures in the coming years. A significant portion of the country’s revenue will continue to be used to pay interest on existing loans, leaving less room for development spending and public welfare programs.
For the fiscal year 2026-27, interest payments are estimated at around Rs. 7,824 billion. This amount is projected to increase steadily each year, eventually crossing Rs. 10,000 billion annually by the fiscal year 2030-31.
Officials note that both tax and non-tax revenues are being utilized to meet these obligations. The growing cost of debt servicing reflects the impact of higher debt levels accumulated over time, as well as the expense of financing government borrowing.
Economic analysts say that rising interest payments place additional pressure on public finances because a larger share of government income must be allocated to debt obligations instead of investment in infrastructure, education, healthcare, and other development sectors.
The projections also underline the importance of improving fiscal management and increasing revenue collection. Experts believe that controlling budget deficits, expanding the tax base, and supporting economic growth could help reduce long-term debt pressures.
As Pakistan continues to manage economic challenges, debt servicing remains a key concern for policymakers.
The expected increase in interest payments highlights the need for sustainable financial policies to maintain economic stability and reduce future fiscal risks. The issue is likely to remain an important topic in budget discussions and long-term economic planning.
