The Ministry of Finance report revealed that the debt burden of Pakistani citizens rose by 13 per cent in the previous fiscal year, raising per capita public debt to Rs333,041.
The report reveals that per capita debt has increased from Rs294,098 in FY 2023-24 to Rs333,041 in FY 2024-25, adding up to almost Rs39,000 per person in one year.
The growing public debt remains a serious economic problem in Pakistan. The constant rising of borrowing is becoming worrisome and may lead to more fiscal pressures in future, warned economists.
The country’s public debt stood at Rs97.3 trillion, compared with Rs89.8 trillion a year ago, increasing by Rs7.5 trillion in one year, mainly due to the increase in interest payments.
The report indicates that Pakistan’s debt-to-GDP ratio has risen to approximately 76 per cent and the size of the national economy is approximately Rs127 trillion. This is a sign of the increasing burden on the nation’s economy, experts say.
The report also pointed out that the average annual income of the citizens is approximately Rs532,000, which is also almost equivalent to the debt burden on them.
If current trend of government’s growing debt continues, the government will have more challenges to maintain fiscal discipline, fund development projects and support the public welfare programs in the future, economists have warned.
Also read: SBP weekly report shows over Rs500 million debt retired
