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Pakistan's Debt Crisis: Inflation Soars, Growth Stalls

10/19/2025

30 3 Full Breakdown

Summary

Story summary

Pakistan's public debt stands at Rs 80.5 trillion, fueling inflation near 18% and a weak rupee.
The International Monetary Fund projects Pakistan's GDP growth at 2.7% for 2025, insufficient to ease debt.
More than 46% of the federal budget goes to debt servicing, limiting funds for essential services.
Political resistance to reforms worsens IMF dependency amid external shocks and a narrow tax base.

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Story summary

Pakistan's public debt stands at Rs 80.5 trillion, fueling inflation near 18% and a weak rupee.
The International Monetary Fund projects Pakistan's GDP growth at 2.7% for 2025, insufficient to ease debt.
More than 46% of the federal budget goes to debt servicing, limiting funds for essential services.
Political resistance to reforms worsens IMF dependency amid external shocks and a narrow tax base.