ISLAMABAD – Pakistan’s financial crisis reached new high as public debt shot up to record-breaking Rs80.5 trillion by June 2025, piling on staggering Rs25.4 billion every single day.
The shocking revelation, confirmed by the State Bank of Pakistan (SBP), has set off alarm bells at home and abroad. The debt mountain, now equal to more than 70% of the country’s economy, has smashed through legal limits set by Parliament under the Fiscal Responsibility and Debt Limitation (FRDL) Act.
Islamabad spent an eye-watering Rs13.2 trillion last year just to service existing loans, including Rs9.5 trillion in interest alone. Even the IMF, supposed to ensure fiscal discipline, collected Rs162 billion ($570 million) in interest payments from Islamabad.
The total external debt and liabilities now stand at a colossal $135 billion, with experts warning the burden is simply “unsustainable.”
As government scrambles to appease coalition partners with mega projects, economists fear the economy is edging closer to collapse. “Pakistan is in a debt death spiral,” said another expert. “With every passing day, repayment costs are burying the country deeper.”
