Pakistan’s federal debt has risen sharply during the tenure of Prime Minister Shehbaz Sharif. By December 2025, the country’s total federal debt reached Rs. 78.5 trillion.
This represents an increase of Rs. 13.7 trillion compared to the previous level. The large jump shows that the government has depended heavily on borrowing to meet its financial requirements and manage state expenses.
Most of this increase came from domestic borrowing. Loans taken from within Pakistan went up by Rs. 12.7 trillion. This includes borrowing from local banks and other financial institutions inside the country.
On the other hand, external debt which means loans taken from foreign governments and international organizations increased by Rs. 1.03 trillion. Although the rise in foreign debt is smaller than domestic borrowing, it still adds to the country’s total repayment burden.
The rising debt highlights the ongoing financial difficulties facing Pakistan’s economy. The government continues to deal with budget deficits, growing expenditures, and development needs.
When government income is not enough to cover spending, borrowing becomes necessary. However, frequent borrowing increases interest payments and future repayment responsibilities, placing more pressure on national finances.
Economists and financial experts are carefully observing these trends. They worry that higher debt levels could affect inflation, weaken the currency, and slow down economic growth.
Many experts suggest improving tax collection, reducing unnecessary spending, and introducing structural reforms to stabilize the economy. Responsible debt management will be essential to ensure long-term financial stability and to reduce economic pressure in the years ahead.
