Overview: A Record Debt Level Revealed to Parliament
Pakistan’s public debt climbed to a historic Rs80.5 trillion by the end of June 2025, according to a written reply from the Finance Ministry presented to the National Assembly. The disclosure, prompted by a question from AP-leaning legislator Asif Khan, places debt at a new peak amid ongoing fiscal pressures and macroeconomic adjustment efforts.
What the Figure Means for the Economy
The Rs80.5 trillion debt stock encompasses both domestic and external obligations. In recent years, Pakistan has faced rising borrowing costs, currency depreciation, and a widening fiscal deficit. A debt level of this magnitude signals the country’s sustained reliance on borrowing to fund deficits, service interest payments, and support essential public services.
Debt Composition and Public Financing
Public debt typically comprises two broad categories: domestic debt (issued within Pakistan in the form of government bonds and gilts) and external debt (international loans and bonds). The Finance Ministry’s data for June 2025 suggests that both components contribute to the overall debt pile, with the structure shaped by exchange-rate movements, interest rates, and policy choices on borrowing and fiscal consolidation.
Implications for Policy and Economic Stability
Rising public debt can influence several policy dimensions, including borrowing costs, potential crowding out of private investment, and the government’s ability to respond to shocks. Authorities often respond with a combination of fiscal consolidation measures, revenue enhancement, and targeted spending reforms designed to stabilize debt-to-GDP ratios over time. The NA’s receipt of the latest debt figures underscores the ongoing debate over fiscal discipline versus the need for investment in growth-promoting programs.
What Comes Next: Roadmap and Challenges
Key challenges include maintaining fiscal sustainability while safeguarding social spending and development projects. Policymakers may emphasize revenue mobilization, expenditure efficiency, and structural reforms to improve long-run growth prospects. As the figure covers the June 2025 period, the trajectory in the subsequent quarters will depend on policy effectiveness, external conditions, and returns from ongoing stabilization efforts.
Conclusion: Transparency in Public Finance
In moments like these, clear reporting to the National Assembly helps Parliament scrutinize fiscal risk and hold the government to account. The Rs80.5 trillion debt mark signals a turning point for Pakistan’s public finances and highlights the importance of credible, transparent policy steps to restore fiscal space and investor confidence.
