Pakistan’s Debt Bomb: Every Citizen Owes PKR 295,000

Pakistan’s debt crisis has reached alarming levels, with every citizen owing a staggering PKR 295,000 to national and international institutions. This massive debt burden is a result of successive governments relying heavily on borrowing to run the country’s affairs .

The Ministry of Finance reports that Pakistan’s total debt has surged by PKR 8.36 trillion, reaching a whopping PKR 71.24 trillion. This represents a significant increase from the previous fiscal year’s total national debt of PKR 62.88 trillion. To put this into perspective, the current debt level is equivalent to 67.2% of Pakistan’s Gross Domestic Product (GDP) .

Breaking down the debt, Pakistan’s domestic debt stands at PKR 47.160 trillion, while external debt has reached PKR 33.062 trillion. The net government external debt has climbed to PKR 21.75 trillion, with a notable increase of PKR 292 billion in debt owed to the International Monetary Fund (IMF), totaling PKR 2.33 trillion .

Composition of Domestic Debt:

• Federal Government Bonds: PKR 32.8 trillion
• Pakistan Investment Bonds (PIBs): PKR 28 trillion
• Sukuk Bonds: PKR 4.77 trillion
• Prize Bonds: PKR 345 billion
• Foreign Currency Loans: PKR 374 billion
• Naya Pakistan Certificates: PKR 84 billion

The rising debt levels underscore the urgent need for comprehensive economic reforms and prudent fiscal management to ensure long-term financial stability. The government must focus on enhancing revenue generation, controlling expenditures, and fostering economic growth to mitigate the impact of this growing debt