Pakistan’s federal government debt has reached an unprecedented level of Rs76,045 billion (Rs76.045 trillion) as of May 2025, marking the highest figure in the country’s history, according to official data released by the State Bank of Pakistan (SBP).
The SBP’s monthly debt bulletin shows that domestic debt accounts for Rs53,460 billion, while external debt stands at Rs22,585 billion. This mix of internal and foreign borrowing shows the government’s growing dependence on loans to meet its financial needs.
Over the past year, Pakistan’s total federal debt surged by Rs8,312 billion. Within the first 11 months of the ongoing fiscal year 2024–25 alone, the debt increased by Rs7,131 billion, showing a consistent upward trend in borrowing.
Moreover, in just one month (May 2025), the government borrowed an additional Rs1,109 billion, pushing the debt up from Rs74,936 billion in April. Back in June 2024, the federal debt stood at Rs68,914 billion, which means Pakistan added nearly Rs7.1 trillion in debt in less than a year.
This rise in debt comes at a time when Pakistan is facing high inflation, low growth, and IMF pressure to reduce spending. Economists stress the need for urgent fiscal reforms, strict debt management, and increased revenue generation to avoid further economic instability and public hardship.