KARACHI: The State Bank of Pakistan (SBP) has indicated a record increase in the debt of the federal government in the recently released report, raising serious concerns about the financial stability of the country.
According to the report, on a year-to-year basis, the overall Pakistan government debt has skyrocketed by 12.7%, reaching Rs. 73.69 trillion in March 2025, comparatively higher than Rs. 65.38 trillion in March 2024.
If analyses are seen on a month-on-month basis, 0.9% of debt increased, causing Rs. 652 billion in just one month.
The report additionally indicates a significant rise of 18.6% in domestic debt, surging from Rs 43.43 trillion in March 2024 to Rs 51.52 trillion in March 2025.
At the same time, 0.7% monthly and 1% annual external debt was seen as an increase, reaching Rs. 22.17 trillion.
In the report, the State Bank of Pakistan has indicated that there is a significant rise in long-term public debt, while a slight decline has been seen in short-term.
Based on the report, experts have warned that continuous dependence on borrowing may worsen the economic challenges of Pakistan, making Pakistan government debt repayment gradually tougher.
Economic specialists specify that Pakistan’s budget deficit is a major issue, as the government heavily depends on loans to meet its financial obligations.
