Born into debt: Every Pakistani owes over Rs333,000

ISLAMABAD: The debt burden on every Pakistani citizen increased by 13% during the last fiscal year, pushing per capita public debt to Rs333,041, according to the Ministry of Finance’s report.

The report revealed that debt per capita rose from Rs294,098 in fiscal year 2023-24 to Rs333,041 in fiscal year 2024-25, marking an increase of nearly Rs39,000 per person in just one year.

Pakistan’s growing public debt has emerged as a major challenge for the government and the economy. Economists warn that the continuous rise in borrowing is becoming increasingly alarming and could create further fiscal pressures in the coming years.

The country’s total public debt climbed to Rs97.3 trillion, up from Rs89.8 trillion a year earlier, driven largely by higher interest payments. This represents an increase of Rs7.5 trillion in a single year.

According to the report, Pakistan’s debt-to-GDP ratio has risen to approximately 76%, while the country’s economy is valued at around Rs127 trillion. Experts note that this level of indebtedness highlights the growing financial strain on the national economy.

Major Headway in Virtual Talks as IMF Agrees to Rs 200 Billion Increase in Pakistan’s PSDP

The report also stated that the average annual income per Pakistani is approximately Rs532,000, meaning a significant portion of an individual’s yearly earnings is now equivalent to the debt burden carried on their behalf.

Economists have cautioned that if the pace of debt accumulation continues, the government may face increasing challenges in maintaining fiscal discipline, financing development projects, and supporting public welfare programs in the years ahead.