Politics
Pakistan’s government debt has recorded a historic and unprecedented increase of 340% over the past 10 years.
Pakistan’s government debt has recorded a historic and unprecedented increase of 340% over the past 10 years. According to a report issued by the federal Ministry of Finance, the country’s total government debt increased by a record Rs67 trillion during this period, pushing the overall debt burden to Rs86.7 trillion.
According to the document, Pakistan’s total government debt stood at Rs19.7 trillion as of June 2016, comprising Rs13.6 trillion in domestic debt and Rs6.1 trillion in external debt. However, the debt continued to rise steadily over the years. Ministry of Finance data shows that total government debt reached Rs21.4 trillion by June 2017 and increased further to Rs24.9 trillion by June 2018.
The report states that amid mounting fiscal pressures, total government debt stood at Rs32.7 trillion by June 2019 and rose to Rs36.4 trillion by June 2020. Similarly, the country’s government debt increased to Rs39.9 trillion by June 2021 and continued to rise, eventually reaching a record high of Rs86.7 trillion by June 2026. The Ministry of Finance report further stated that, as of June 2026, the total debt comprised Rs59.4 trillion in domestic debt and Rs27.3 trillion in external government debt. Economists have described the rapidly rising debt burden as a major challenge for Pakistan’s economy.
