Pakistan Govt Debt Surges by Rs 4,304 Billion in Eight Months

The financial woes of Pakistan have deepened as government debt surged by Rs 4,304 billion between July and February of this fiscal year. Rising inflation, currency devaluation, and external borrowing contributed to this alarming increase.

Economic Strain

Pakistan’s total public debt has reached unprecedented levels, driven by a widening fiscal deficit and costly energy subsidies. The rupee’s depreciation further escalates debt servicing costs.

Policy Adjustments Ahead

Economists warn of potential fiscal adjustments, including subsidy rationalization and taxation reforms, to stabilize the economy. The surge in debt raises concerns about the country’s ability to meet international repayment obligations and its reliance on external financing.

Urgent measures are needed to rein in debt and restore economic confidence​