Karachi, May 13, 2025 — Pakistan’s debt burden continues to grow, as the country’s total central government debt rose by 13% year-on-year, reaching Rs73.69 trillion by the end of March 2025.
The State Bank of Pakistan (SBP) released this data on Monday, highlighting the steady rise in both domestic and external debt.
In March 2024, Pakistan’s total debt stood at Rs65.39 trillion. The domestic portion of this debt rose sharply over the past year, increasing from Rs43.44 trillion to Rs51.52 trillion. A significant share of this rise came from long-term debt, which surged to Rs43.59 trillion, up from Rs34.85 trillion.
According to State Bank of Pakistan, within the long-term category, Pakistan’s permanent debt — which includes instruments like Pakistan Investment Bonds (PIBs) and Ijara Sukuk — rose to Rs40.56 trillion, compared to Rs31.68 trillion a year earlier. Additionally, the debt from prize bonds also saw a slight increase, rising from Rs384 billion to Rs401 billion, the State Bank of Pakistan added.
Unfunded debt, which includes savings schemes and postal life insurance, climbed to Rs2.94 trillion, up from Rs2.79 trillion a year earlier. On the other hand, short-term debt — primarily made up of market treasury bills — decreased to Rs7.86 trillion from Rs8.49 trillion in March 2024.
Pakistan’s external debt also saw a marginal increase over the year, reaching Rs22.17 trillion in March 2025 compared to Rs21.94 trillion previously.
This latest update from State Bank of Pakistan underscores the ongoing pressure on Pakistan’s finances, as both domestic and external debt levels remain high. With Pakistan’s debt continuing to mount, economic planners face growing challenges in managing liabilities while ensuring financial stability.
The rising trend in Pakistan’s debt signals the urgent need for fiscal reforms, improved revenue collection, and reduced reliance on borrowing. Without corrective action, Pakistan’s debt could pose serious risks to long-term economic sustainability.