Pakistan’s public debt burden has increased significantly, with every citizen now carrying an average debt of more than Rs333,000, according to the latest report released by the Ministry of Finance. The figures show a sharp rise in the country’s debt obligations during the fiscal year 2024-25, highlighting growing concerns about Pakistan’s long-term financial stability.
The report reveals that per capita public debt climbed from Rs294,098 in fiscal year 2023-24 to Rs333,041 in fiscal year 2024-25. This represents an increase of nearly Rs39,000 per person within just one year, reflecting the continued expansion of government borrowing and rising financial commitments.
Pakistan’s overall public debt stock also recorded a substantial increase. Total public debt reached Rs97.3 trillion, compared to Rs89.8 trillion in the previous fiscal year. The increase of Rs7.5 trillion was largely attributed to higher borrowing costs and growing interest payments on existing debt.
Economic experts have expressed concern over the pace of debt accumulation, warning that continued borrowing could place additional pressure on public finances. The report notes that Pakistan’s debt-to-GDP ratio has now reached approximately 76%, while the country’s economy is valued at around Rs127 trillion. Such levels indicate a heavy financial burden on the national economy and raise questions about future fiscal sustainability.
Another notable finding from the report is the comparison between debt and income levels. The average annual income per Pakistani is estimated at around Rs532,000, meaning that a significant portion of a citizen’s yearly earnings is effectively matched by the debt burden carried on their behalf.
Economists caution that if debt continues to grow at the current pace, the government may face increasing difficulties in maintaining fiscal discipline, funding development projects, and supporting essential public welfare programs. They stress the importance of stronger revenue generation, economic growth, and prudent financial management to prevent further pressure on the country’s economic outlook.
