According to the State Bank of Pakistan, the country’s total public debt has increased by Rs. 5.904 trillion over the past year, reaching Rs. 81.949 trillion. The latest figures show that Pakistan’s overall debt continues to rise as the government faces ongoing financial and economic challenges.
The report states that domestic debt recorded the biggest increase during the year, growing by Rs. 4.647 trillion. At the same time, external debt also increased by Rs. 1.257 trillion. Officials noted that short-term external debt saw a significant rise, reflecting increasing financing requirements and pressure on the country’s financial resources.
Experts say governments borrow money to meet budget needs, finance development projects, and manage public spending. However, higher borrowing also increases the amount that must be paid back in the future, including interest on the loans.
According to current estimates, Pakistan is expected to pay more than Rs. 8.054 trillion in interest during the current fiscal year. These payments form a major part of government spending and can reduce the funds available for development projects, education, healthcare, and other public services.
The Auditor General of Pakistan has also raised concerns about the management of public debt. The report questions borrowing practices and highlights the need for stronger financial planning and better debt management to reduce long-term economic risks.
Economists believe that maintaining a balance between borrowing and economic growth is important for financial stability. They say increasing revenue collection, controlling unnecessary spending, and improving fiscal management can help reduce pressure on the national economy.
The latest debt figures underline the financial challenges facing Pakistan and the importance of adopting sustainable economic policies. Experts believe careful debt management and long-term planning will be essential to support economic growth and maintain financial stability in the future.
