Pakistan Financial Disaster: Pakistan is usually referred to as the begging bowl of the world, particularly among the many Islamic nations. From time to time, Pakistani Prime Minister Shehbaz Sharif is seen visiting pleasant international locations searching for help, investments and assist whereas its Military retains spending on constructing terror infrastructure. Now, a recent report has revealed a staggering surge in Pakistan’s debt. Whereas Pakistan has been dealing with burgeoning inflation, the nation’s nationwide debt is hovering to a report excessive.
A brand new Financial Survey, launched this Monday, reveals that Pakistan’s debt has soared to an unprecedented excessive, portray a deeply regarding image for its financial future.
In keeping with the CNN-NEWS18 report, Pakistan’s whole public debt hit a staggering 76,007 billion Pakistani Rupees (PKR)—that is 76 trillion —by the tip of March 2025. This marks the best debt stage within the nation’s historical past. To place that into perspective, it interprets to roughly INR 23.1 trillion or US $269.344 billion.
The speedy escalation of this debt is especially alarming. Simply 4 years in the past, in 2020-21, Pakistan’s public debt stood at 39,860 billion PKR, which means it has practically doubled in that brief span. Wanting again a decade, the determine was simply 17,380 billion PKR, indicating that the nation’s public debt has ballooned by virtually 5 occasions over the previous ten years.
This colossal sum of 76,007 billion PKR is made up of 51,518 billion PKR in home debt and 24,489 billion PKR in exterior debt. The Financial Survey itself warns of the risks, stating that “extreme or poorly managed debt can pose critical vulnerabilities, corresponding to rising curiosity burdens and might undermine long-term fiscal sustainability and financial safety if left unaddressed.”
Amidst this backdrop, Pakistan lately acquired a US $1.03 billion assist package deal from the Worldwide Financial Fund (IMF) underneath its Prolonged Fund Facility, an try to offer some reduction to its strained financial system.
Notably, Pakistan is planning to extend its defence spending in wake of the Operation Sindoor the place it confronted a humiliating defeat towards India. Pakistan has repeatedly been accused of diverting improvement funds in the direction of terror and navy infrastructure.