Pakistan’s total public debt surged from Rs 71 trillion to Rs 80.5 trillion within 360 days, as per a government fiscal summary. This increase, described as a period of economic stabilisation, averages to Rs 26 billion borrowed daily, even on public holidays. The government accumulates Rs 1.08 billion in new debt every hour, with Rs 18 million added every minute.
The report highlights that for every Rs 100 generated by Pakistan’s economy, Rs 72 is already owed, pushing the debt-to-GDP ratio to 72 percent. Out of the Rs 9 trillion rise in debt, Rs 2 trillion went to grants and another Rs 2 trillion covered losses in state-owned enterprises. Notably, key loss-making entities like power utilities and the national airline have yet to undergo structural reforms.
Furthermore, the government’s fleet of 85,500 vehicles incurs an annual fuel cost of Rs 114 billion. The report warns that without substantial reforms, debt servicing will increasingly deplete tax revenue, impacting investments in crucial sectors like education and health. Economists caution that the current pace of debt accumulation is the swiftest in Pakistan’s 79-year history.
