The Ministry of Finance revealed that government debt has increased by more than 300 percent in the past nine years. Total debt reached a historic high of Rs80.5 trillion by June 2025. This sharp rise highlights the growing financial pressures on the government. The report points to an accelerating borrowing trend over recent years. Consequently, managing this debt is becoming a critical issue for policymakers.
In just the last three years, the debt rose by Rs31.2 trillion. Between June 2018 and June 2022, debt grew by Rs24.9 trillion alone. By June 2025, local debt accounted for Rs54.5 trillion, while foreign debt stood at Rs26 trillion. These numbers show a significant reliance on both domestic and international borrowing. Moreover, the scale of increase demands urgent attention.
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The report shows that government debt was Rs19.7 trillion in June 2016. Local debt was Rs13.6 trillion, and foreign debt was Rs6.1 trillion at that time. Over the following years, the debt steadily increased. It rose to Rs21.4 trillion in 2017, Rs24.9 trillion in 2018, and Rs32.7 trillion in 2019. This steady climb reflects growing budget deficits and economic challenges.
Debt further increased to Rs36.4 trillion in June 2020 and Rs39.9 trillion in June 2021. By June 2022, it reached Rs49.2 trillion, then surged to Rs62.9 trillion in 2023. In June 2024, the debt hit Rs71.2 trillion. This continuing upward trend shows no signs of slowing down. It raises concerns about the sustainability of government finances.
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Overall, the Ministry’s report highlights a worrying rise in Pakistan’s government debt over nearly a decade. This growth stresses the need for strong fiscal reforms. The government must find ways to control borrowing and improve financial stability. Without urgent action, economic risks may increase. Thus, debt management remains a top priority for the country’s future.