Pakistan's total federal debt surpassed Rs 70 trillion, driven by substantial borrowing to cover the fiscal deficit, according to the State Bank of Pakistan (SBP). In just two months of FY2024-25, the government’s debt rose by 2.1%, reaching Rs 70.362 trillion, an increase of Rs 1.448 trillion.
This surge was primarily due to a significant rise in domestic debt, which grew by Rs 1.179 trillion, bringing the total domestic debt to Rs 48.34 trillion.
Meanwhile, external debt increased modestly by 1.2% to Rs 22.023 trillion, aided by a slight strengthening of the rupee. This highlights the ongoing challenges in managing fiscal health amid rising expenditures and slower revenue collection.
This surge was primarily due to a significant rise in domestic debt, which grew by Rs 1.179 trillion, bringing the total domestic debt to Rs 48.34 trillion.
Meanwhile, external debt increased modestly by 1.2% to Rs 22.023 trillion, aided by a slight strengthening of the rupee. This highlights the ongoing challenges in managing fiscal health amid rising expenditures and slower revenue collection.