The federal government’s debt surged by over Rs13 trillion during the first 16 months of the current government, led by Prime Minister Shehbaz Sharif, official figures from the State Bank of Pakistan (SBP) documents have revealed.
Between March 2024 and June 2025, the government’s total debt stock rose from Rs64.81 trillion to Rs77.88 trillion, marking an increase of Rs13.078 trillion over the period.
The data, compiled by the SBP, shows that the rise was primarily driven by a sharp increase in domestic borrowing, which accounted for Rs11.796 trillion of the total increase. Meanwhile, external debt saw a comparatively moderate rise of Rs1.282 trillion.
As of February 2024, the federal government’s domestic debt stood at Rs42.675 trillion, which increased to Rs54.471 trillion by June 2025. During the same period, external debt rose from Rs22.134 trillion to Rs23.417 trillion.
Economic observers note that while some level of borrowing is inevitable for budgetary support and development spending, the pace at which debt is accumulating may raise concerns over long-term debt sustainability.
Pakistan remains engaged with international financial institutions, including the International Monetary Fund (IMF), for future lending programmes and fiscal reforms.
