New Delhi: Pakistan’s financial health is in deep trouble, with its public debt touching a record high, according to the country’s Economic Survey released on Monday. The document, which provides a comprehensive account of the country’s financial status, shows that as of March 2025, Pakistan’s total public debt has climbed to Rs 76,007 billion — the highest in its history. This amounts to about Rs 23.1 trillion in Indian currency or 269.34 billion US dollars.
Of the total amount, Rs 51,518 billion is domestic debt while Rs 24,489 billion is owed to external sources. In just four years, the country’s debt has nearly doubled from Rs 39,860 billion in 2020–21. A decade ago, the figure stood at only Rs 17,380 billion, indicating that Pakistan’s public debt has grown by nearly five times over ten years.
Debt risks and bailout
The survey cautions that excessive or mismanaged debt can create major vulnerabilities such as increased interest obligations and could severely impact fiscal stability and long-term economic security. Amid this financial crisis, Pakistan has received a bailout of US $1.03 billion under the International Monetary Fund’s (IMF) Extended Fund Facility. The Economic Survey notes that public debt grew by 6.7% during the first nine months of the 2024–25 fiscal year.
Pakistan’s dependence on foreign aid has long been criticised. Prime Minister Shehbaz Sharif has publicly admitted this, saying that requests to friendly nations are often seen as begging for money. He also acknowledged that several smaller countries have overtaken Pakistan economically while the country has spent the last 75 years “carrying a begging bowl”.
Rising poverty, global concern
To make matters worse, the World Bank’s revised poverty estimates show that nearly 45% of Pakistan’s population lives in poverty, and 16.5% face extreme poverty. An earlier April 2025 assessment by the World Bank said 1.9 million more people had slipped into poverty this fiscal year.
India has repeatedly voiced concerns at global platforms, alleging that Pakistan has misused international financial aid, including funds from the IMF, for activities that do not benefit its citizens — including supporting terrorism. The new poverty data could strengthen India’s case.
