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Pakistan’s federal government debt has hit a historic high of Rs 73,688 billion, showing a sharp monthly and yearly increase, according to the latest data released by the State Bank of Pakistan (SBP).
According to the central bank’s March 2025 report, federal debt rose 12.7 percent year-on-year, climbing to Rs 73.69 trillion, compared to Rs 65.38 trillion in March 2024.
On a month-on-month basis, debt rose 0.9 percent, adding Rs 652 billion in just one month.
The report highlighted a sharp 18.6 percent annual rise in domestic debt, now standing at Rs 51.52 trillion, up from Rs 43.43 trillion a year ago.
Meanwhile, external debt increased to Rs 22.17 trillion, with a modest 0.7 percent rise in March and 1 percent year-on-year growth.
SBP also noted a shift in borrowing trends, revealing a decline in short-term debt while long-term debt continues to rise, reflecting changing government strategies to manage fiscal pressure.
Experts warn that Pakistan’s growing reliance on loans is deepening the budget deficit, making debt servicing more difficult.
They caution that persistent borrowing without structural reforms may exacerbate economic instability.
