By Raja Sb 
Historic Surge in National Debt
Pakistan’s total debt has soared to Rs848 trillion, reflecting an increase of Rs93 trillion in the fiscal year 2025, according to recent figures released by the Ministry of Finance. The spike in debt has raised fresh concerns about the country’s financial sustainability and long-term fiscal health.
Key Drivers Behind the Debt Increase
Officials cite rising interest payments, rupee depreciation, and higher government borrowing to fund budgetary deficits as primary causes behind the surge. The external debt portion has also increased significantly due to the strengthening of the U.S. dollar and growing reliance on foreign loans.
Economic Experts Raise Alarms
Economists warn that Pakistan’s debt-to-GDP ratio continues to exceed safe limits, potentially impacting investment confidence and macroeconomic stability. They emphasize the need for revenue reforms, spending control, and stronger export-led growth to manage the situation.
Government’s Response
Finance ministry officials assert that recent IMF programs, tax reforms, and energy sector adjustments will gradually stabilize debt indicators. They also aim to increase domestic resource mobilization to reduce dependence on foreign borrowing.
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Ata Ur Rahmen