Pakistan’s economic situation reached a new low as its overall public debt rose to an all-time high of 76,007 billion Pakistani rupees (₹76 trillion), the Economic Survey 2025 published on Monday revealed. The astronomical figure indicates a sharp decline in the country’s fiscal management and has raised new concerns regarding the long-term economic stability of the country.
The figures analyzed by CNN-NEWS18 indicate that the debt stands at ₹23.1 trillion in rupee terms and about USD 269.34 billion, a record high for Pakistan. For comparison, the country’s debt was at ₹39.86 trillion in 2020-21 and ₹17.38 trillion in 2013-14, which means the debt has almost doubled in four years and quintupled over the last decade.
Domestic and External Liabilities Soar
Out of the total ₹76 trillion, ₹51.5 trillion comprises domestic debt, while ₹24.48 trillion is external debt owed to foreign entities. The report cautions that poorly managed debt can “pose serious vulnerabilities, such as rising interest burdens and can undermine long-term fiscal sustainability and economic security if left unaddressed.”
The Economic Survey also reported a 6.7% rise in public debt in the first nine months of FY25, even though Pakistan received USD 1.03 billion under the IMF’s Extended Fund Facility.
Begging Bowl Diplomacy and Poverty Woes
The debt trap has invited sharp criticism even within the country’s leadership. Prime Minister Shehbaz Sharif previously acknowledged the shameful fact of Pakistan’s reliance on foreign aid:
“Now, whenever we visit any friendly nation or place a call, they assume that we have come to beg for money.”
Sharif also conceded the country’s economic stagnation:
“Even small economies have overtaken Pakistan, and we’ve been roaming the last 75 years with a begging bowl.”
At the same time, the World Bank’s recent figures present a dismal picture of the lives of common Pakistanis. The international organization puts the poverty-stricken population of Pakistan at 45%, with 16.5% in extreme poverty, after revising the world poverty line recently. A recent World Bank report in April had reported that 1.9 million more Pakistanis fell into poverty in FY25.
India Raises Concerns Over Aid Misuse
India. has publicly expressed its worries over Pakistan’s abuse of foreign assistance. As more and more evidence of rising poverty and economic mismanagement mounts, India has pressed the IMF and World Bank to probe how the money is being spent.
New Delhi contends that poverty-alleviating aid is being diverted toward financing terrorist infrastructure, particularly against India. The new World Bank statistics, together with Pakistan’s deteriorating economic indicators, might strengthen India’s case in international forums.
A Crisis That Can’t Be Ignored
With financial pressures building and global watchfulness growing, Pakistan is at an economic juncture today. The soaring debt, pervasive poverty, and heavy reliance on bailouts are manifestations of systemic flaws calling for immediate change.
If Islamabad does not significantly overhauls its economic plans, the weight of ₹76 trillion may not only debilitate its economy but also threaten the welfare of millions of its people.
