Pakistan’s federal government debt has surged to an unprecedented Rs78,238 billion, with an additional Rs350 billion increase recorded in July 2025 alone. This significant rise marks a new high for the country’s central debt burden. According to updated figures, the federal debt grew by Rs8,615 billion over the past year, underlining the mounting financial pressure on the government amid ongoing economic challenges.
The latest data, released by the State Bank of Pakistan, reveals that between August 2024 and July 2025, federal government debt rose by Rs8,615 billion. Compared to June 2025, when the debt stood at Rs77,888 billion, July’s figure reflects a one-month increase of Rs350 billion. This steady climb highlights the government’s increasing reliance on borrowing to meet fiscal requirements and manage budgetary gaps during a period of economic stress.
Moreover, the figures show a substantial rise in both domestic and external borrowings. During the one-year period ending in July 2025, domestic debt grew by Rs7,272 billion, while external debt rose by Rs1,343 billion. These increases suggest that the government is tapping multiple sources to fund its expenditures, with domestic borrowing continuing to dominate Pakistan’s overall debt composition.
As of July 2025, domestic debt accounted for Rs54,988 billion of the total, while foreign debt stood at Rs23,250 billion. This composition underlines the heavy dependence on internal resources to manage fiscal needs while maintaining access to external credit for additional financing. The government’s approach to debt management will be closely watched by investors and analysts who are increasingly concerned about long-term economic stability and repayment capacity.
The comparison with earlier data reveals the rapid pace of debt accumulation. In June 2025, the total federal debt was Rs77,888 billion, while in July 2024, it was Rs69,623 billion. This means the government borrowed more than Rs8 trillion within a year. Such sharp increases raise questions about fiscal discipline, spending efficiency, and the need for robust economic reforms to stabilize public finances and reduce reliance on large-scale borrowing.
Financial experts warn that if borrowing trends continue unchecked, Pakistan’s economic outlook may face further pressure, particularly in managing debt servicing costs and inflationary risks. The government is now expected to introduce policies aimed at improving revenue collection, controlling expenditures, and fostering economic growth to ease its reliance on debt. The record-breaking debt figures serve as a reminder of the urgent need for sustainable financial strategies to secure the country’s economic future.