Pakistan’s per capita public debt rose sharply to approximately Rs. 333,000 during the last fiscal year, reflecting mounting fiscal pressures as the country’s total public debt surged to Rs. 80.5 trillion, according to the Ministry of Finance’s Fiscal Policy Statement presented to Parliament.
The annual report revealed that per capita debt increased by nearly 13 percent, from Rs. 294,098 in fiscal year 2023–24 to Rs. 333,041 in fiscal year 2024–25. This represents an increase of about Rs. 39,000 per person in just one year, calculated on the basis of an estimated population of 241.5 million.
According to the statement, total public debt rose from Rs. 71.2 trillion in June 2024 to Rs. 80.5 trillion by June 2025. The finance ministry attributed the increase primarily to higher interest payments stemming from additional borrowing to finance expenditures beyond statutory limits. Exchange rate movements and elevated debt servicing costs were also cited as key contributing factors.
Public debt as a share of gross domestic product increased from 67.6 percent in June 2024 to 70.7 percent by June 2025, underscoring persistent challenges in debt sustainability despite government claims of fiscal discipline.
The fiscal year 2024–25, the first full year of the government led by Prime Minister Shehbaz Sharif, saw the federal fiscal deficit widen significantly. The report noted that the deficit reached 6.2 percent of GDP, exceeding the legally mandated ceiling of 3.5 percent under the Fiscal Responsibility and Debt Limitation Act. In absolute terms, spending exceeded the allowed deficit by around Rs. 3.1 trillion.
On the expenditure side, interest payments totaled Rs. 8.8 trillion, while defense spending surpassed its budgeted allocation. Tax revenues fell short of targets, though higher non-tax revenues, including profits from the State Bank of Pakistan and petroleum levies, helped partially offset fiscal pressures.
The finance ministry stated that provincial surpluses and stronger non-tax revenues helped contain the consolidated fiscal deficit at 5.4 percent of GDP, slightly lower than budgeted, but warned that public debt dynamics remain a critical challenge for the economy.
