Pakistan’s federal government debt surged to a record Rs 73,688 billion by the end of March 2025, marking a 0.9% monthly and a massive 12.7% annual increase, according to the latest data released by the State Bank of Pakistan.
In just one month, the government added Rs 652 billion to its debt burden. Compared to the previous year—March 2024, when the total debt stood at Rs 65,374 billion—the increase amounts to a staggering Rs 8,314 billion, setting a new high in the country’s fiscal history.
A deeper dive into the figures reveals that the government’s domestic debt has been the primary driver of this surge.
Local borrowing rose by 1% month-on-month and 18.6% year-on-year, reaching Rs 51,518 billion in March 2025—up from Rs 43,432 billion in the same month last year.
Meanwhile, external debt also edged upward, albeit at a slower pace. It grew by 0.7% on a monthly basis and 1% annually, totaling Rs 22,170 billion in March 2025, compared to Rs 21,942 billion in March 2024.
