Pakistan’s national debt has climbed sharply over the past three years, reaching Rs 81,400 billion by December 2025, according to official documents.
The country continues to face substantial interest payments, straining the fiscal budget and highlighting growing dependence on internal debt.
Debt growth over three years
Pakistan’s debt has risen dramatically in a short span.
- In June 2022, total debt stood at Rs 49,200 billion.
- By June 2023, it increased to Rs 62,900 billion.
- In June 2024, the debt further rose to Rs 71,000 billion.
- By December 2025, internal and external debt surpassed Rs 81,400 billion, marking an increase of more than Rs 3,200 billion in three years.
Despite this surge, the rate of increase slowed between June 2025 and December 2025, falling from 12.9% to 1.1%, indicating a minor stabilization in debt growth.
Interest payments on loans
The debt burden comes with significant financial obligations. Last fiscal year, Pakistan paid Rs 8,887 billion in interest alone.
According to Ministry of Finance data, Rs 3,563 billion was paid from July to December 2025, and an even heavier interest burden is expected from January to June 2026, adding further pressure on government finances.
