debt on pakistan
Pakistan’s economic problems are continuously increasing. By June 2025, the total public debt of the country has reached 80.6 lakh crore Pakistani rupees i.e. 286.832 billion US dollars. This figure is about 13 percent more than the last financial year. This shocking information has come to light in the official data released by the Finance Ministry. According to the report, the share of domestic credit in the total credit is Rs 54.5 lakh crore, which recorded an annual growth of 15 percent. Whereas the external debt stood at Rs 26.0 lakh crore, which shows the country’s foreign dependence.
The Finance Ministry had released the Annual Debt Review Report for the financial year 2024-25 in September 2025. It was clearly stated that the main reason for this sharp increase in debt is lower than expected GDP growth. Due to significant decline in inflation, economic activities slowed down, which affected revenue collection.
The government took several steps to reduce fiscal deficit, such as tax reforms, spending cuts and reducing subsidies. But these efforts proved inadequate in the face of weak economic growth. As a result, the debt-GDP ratio increased, which is an alarm bell for the financial health of the country. Experts believe that if the GDP growth rate does not reach 5-6 percent, the debt burden will become more unbearable. The government is now emphasizing on increasing exports, bringing foreign investment and increasing industrial production. Pakistan is already in the loan program of the International Monetary Fund (IMF). In such a situation, increasing debt is not only challenging economic stability but is also putting pressure on social services.
Pakistan’s forex reserves
The foreign exchange reserves of the Central Bank of Pakistan have increased by 14 million US dollars in a week. The State Bank of Pakistan (SBP) said in a statement that during the week ending October 17, the central bank’s foreign exchange reserves stood at $14.46 billion. SBP further said that the net foreign exchange reserves with commercial banks were recorded at $5.40 billion. The total foreign exchange reserves of the country were 19.85 billion dollars.