Pakistan’s debt situation is becoming increasingly alarming. According to the Ministry of Finance, the country’s total debt has surged by a staggering 74 thousand billion rupees in just the first six months of the current fiscal year.
Breaking it down further, the Ministry reports that local debt from July to December 2024 stood at 49.883 trillion rupees, while external debt from December to July was 24.130 trillion rupees. What’s even more concerning is that the government’s debt volume increased by 67 trillion rupees in the first half of the fiscal year.
To put this into perspective, local debt has increased by 5% in the first half of the current fiscal year, with the volume of local debt reaching a whopping 67% of Pakistan’s GDP by December 2024. Meanwhile, the country’s external debt stands at 33% of its GDP.
These numbers are a clear indication that Pakistan’s debt crisis is spiraling out of control, and urgent measures are needed to address this issue.
