Story perspectives

Pakistan's Debt Soars to Rs77.89 Trillion Amid Crises

9/10/2025

Summary

Story summary

Pakistan's government debt reached Rs77.89 trillion by June 2025, a 13.02% increase from the previous year, due to domestic and foreign borrowing for fiscal deficits.
Domestic debt rose to Rs54.47 trillion, with long-term debt up 23.95% and short-term debt down 14.53%.
The FY26 federal budget is Rs17.573 trillion, with nearly half earmarked for debt servicing.
Floods in 2025 displaced 2.5 million people, escalating rehabilitation costs.
Pakistan faces a $26 billion external debt servicing requirement in FY26, complicating financial management.

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Story summary

Pakistan's government debt reached Rs77.89 trillion by June 2025, a 13.02% increase from the previous year, due to domestic and foreign borrowing for fiscal deficits.
Domestic debt rose to Rs54.47 trillion, with long-term debt up 23.95% and short-term debt down 14.53%.
The FY26 federal budget is Rs17.573 trillion, with nearly half earmarked for debt servicing.
Floods in 2025 displaced 2.5 million people, escalating rehabilitation costs.
Pakistan faces a $26 billion external debt servicing requirement in FY26, complicating financial management.