Pakistan’s government debt jumps by Rs 4,304 billion in eight months

Islamabad, Pakistan— Pakistan’s federal government debt has increased by Rs 4,304 billion in the first eight months of the current tenure, according to official documents.

As of October, the total debt stood at Rs 69.114 trillion, up from Rs 64.810 trillion in February, reflecting a significant rise during this period. Domestic debt accounted for a major portion of the increase, rising by Rs 4,556 billion, while foreign debt saw a slight decline of Rs 251 billion.

The domestic debt as of October reached Rs 47.231 trillion, up from Rs 42.675 trillion in February. Meanwhile, foreign debt decreased to Rs 21.884 trillion from Rs 22.134 trillion during the same timeframe.

In October, Pakistan’s central government debt reached a historic high of Rs 70,362 billion, marking the highest level in the country’s history. This surge comes amid mounting economic challenges and is a clear indication of the growing fiscal pressures.

According to data released by the State Bank of Pakistan (SBP), the federal debt increased by Rs 1,448 billion in just the first two months of the current fiscal year, with Rs 739 billion added in August alone. Between September 2023 and August 2024, the federal government’s debt saw a staggering rise of Rs 6,392 billion.