ISLAMABAD: A historic 340 percent increase in Pakistan’s government debt over the past 10 years has been revealed.
Details of the increase in debt have come to light in a report by the Federal Ministry of Finance. According to the report, government debt increased by Rs 67,000 billion in the last 10 years, after which the volume of government debt has reached Rs 86,700 billion.
While until June 2016, government debt was Rs 19,700 billion. According to the report of the Federal Ministry of Finance, till June 2026, the volume of government debt remained Rs 86,700 billion, which included domestic debt of Rs 59,400 billion and foreign government debt of Rs 27,300 billion.
While till June 2016, the government debt was Rs 19,700 billion, which included domestic debt of Rs 13,600 billion and foreign government debt of Rs 6,100 billion. According to the Finance Ministry report, till June 2017 the total government debt was Rs 21,400 billion and till June 2018 the government debt had increased to Rs 24,900 billion.
Similarly, till June 2019 the volume of total government debt was Rs 32,700 billion and till June 2020 the government debt was recorded at Rs 36,400 billion, while till June 2021 the government debt had increased to Rs 39,900 billion.
Interest Rate Trap: Pakistan is borrowing to pay interest on old loans. In FY 2025-26, Pakistan paid over Rs 8,300 billion in interest alone – more than the entire federal development budget and defence budget combined.3. Fiscal Deficit: The government has been spending Rs 2,000 to Rs 3,000 billion more than it earns every year for the last 10 years. This gap is filled by domestic borrowing from banks (Rs 59,400bn).
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