Pakistan’s debt hits $286 billion, report warns
Pakistan’s public debt reached 286 billion dollars at the close of the 2024-25 fiscal year, marking a 13 percent increase from the prior year and highlighting severe structural problems in the nation’s financial management. A report from Maldives Insight states the country’s economy cannot grow fast enough to keep pace with its obligations, with debt servicing consuming the largest share of public funds rather than supporting economic expansion.
The debt-to-GDP ratio climbed to 70 percent from 68 percent, according to Pakistan’s Ministry of Finance Annual Debt Review 2025. Domestic debt surged 15 percent to 194 billion dollars, while external debt grew 6 percent to 92.5 billion dollars, with multilateral loans accounting for 57 percent of foreign obligations.
The fiscal deficit totaled 25.2 billion dollars, financed mainly through domestic borrowing. Interest payments rose 9 percent year over year, restricting funds available for development projects and leaving Pakistan dependent on external assistance.
