Pakistan Economic Crisis: Pakistan is often called the begging bowl of the world, especially among the Islamic nations. Every now and then, Pakistani Prime Minister Shehbaz Sharif is seen visiting friendly countries seeking assistance, investments and support while its Army keeps spending on building terror infrastructure. Now, a fresh report has revealed a staggering surge in Pakistan’s debt. While Pakistan has been facing burgeoning inflation, the country’s national debt is soaring to a record high.
A new Economic Survey, released this Monday, reveals that Pakistan’s debt has soared to an unprecedented high, painting a deeply concerning picture for its economic future.
According to the CNN-NEWS18 report, Pakistan’s total public debt hit a staggering 76,007 billion Pakistani Rupees (PKR)—that’s 76 trillion —by the end of March 2025. This marks the highest debt level in the country’s history. To put that into perspective, it translates to approximately INR 23.1 trillion or US $269.344 billion.
The rapid escalation of this debt is particularly alarming. Just four years ago, in 2020-21, Pakistan’s public debt stood at 39,860 billion PKR, meaning it has nearly doubled in that short span. Looking back a decade, the figure was just 17,380 billion PKR, indicating that the nation’s public debt has ballooned by almost five times over the past ten years.
This colossal sum of 76,007 billion PKR is made up of 51,518 billion PKR in domestic debt and 24,489 billion PKR in external debt. The Economic Survey itself warns of the dangers, stating that “excessive or poorly managed debt can pose serious vulnerabilities, such as rising interest burdens and can undermine long-term fiscal sustainability and economic security if left unaddressed.”
Amidst this backdrop, Pakistan recently received a US $1.03 billion aid package from the International Monetary Fund (IMF) under its Extended Fund Facility, an attempt to provide some relief to its strained economy.
Notably, Pakistan is planning to increase its defence spending in wake of the Operation Sindoor where it faced a humiliating defeat against India. Pakistan has repeatedly been accused of diverting development funds towards terror and military infrastructure.
