ISLAMABAD: The staggering burden of Pakistan’s national debt has deepened sharply, with every citizen now effectively owing Rs 333,000, according to the federal government’s annual fiscal policy statement presented to Parliament. This marks a 13% increase from Rs 294,098 per person in the previous fiscal year, adding approximately Rs 39,000 to each individual’s share within a year.
The Finance Ministry’s report, mandated by law, paints a concerning picture of the nation’s fiscal health, identifying rising public debt as a “major challenge.” The total public debt stock surged from Rs 71.2 trillion in June 2024 to Rs 80.5 trillion by June 2025. This escalation is attributed primarily to high interest payments and exchange rate fluctuations.
The document reveals critical breaches of fiscal discipline. The federal fiscal deficit reached 6.2% of GDP, far exceeding the legal limit of 3.5% under the Fiscal Responsibility and Debt Limitation Act (FRDL), resulting in an extra deficit of about Rs 3 trillion. Consequently, total public debt climbed to 70.7% of GDP from 67.6%.
Despite official austerity claims, the period saw the establishment of new departments, an expanded federal cabinet, and purchases of new vehicles and furniture. On the revenue side, tax collection fell short, meeting only 90.5% of its Rs 12.9 trillion target at Rs 11.7 trillion, though non-tax revenues outperformed expectations. Development spending was curtailed to Rs 1.4 trillion, while defense expenditure overshot its budget to reach Rs 2.2 trillion, and interest payments consumed a colossal Rs 8.8 trillion.
