Pakistan’s Debt Burden: Each Citizen Owes PKR 295,000
ISLAMABAD: The financial situation in Pakistan has reached a critical point, with each citizen now responsible for PKR 295,000 in debt, a reflection of successive governments’ reliance on borrowing to manage the state’s finances.
According to the Ministry of Finance, the total national debt has surged by PKR 8.36 trillion, reaching an alarming PKR 71.24 trillion. This increase marks a significant jump from the previous fiscal year, when the debt stood at PKR 62.88 trillion. Currently, the debt accounts for 67.2% of the country’s Gross Domestic Product (GDP).
Breaking it down, domestic debt has risen to PKR 47.16 trillion, with an increase of PKR 8.35 trillion. Meanwhile, external debt has climbed to PKR 33.062 trillion, of which the net government external debt is PKR 21.75 trillion.
This mounting debt highlights the growing economic challenges facing the nation. What do you think are the implications of such high debt levels for Pakistan’s future?
