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Pakistan's Debt Soars to Rs 80 Trillion, Rising Rs 26 Billion Daily

Pakistan's total public debt has ballooned to Rs 80.5 trillion, increasing by a staggering Rs 26 billion every single day. The debt-to-GDP ratio has reached 72%, meaning Rs 72 is owed for every Rs 100 the economy produces. Economists warn that without structural reforms, debt servicing could consume all tax revenue by 2030, crippling public services. The report highlights that a child born in Pakistan today inherits a debt burden of over Rs 333,000 before taking its first breath.

Key Points: Pakistan Debt Hits Rs 80 Trillion, Rising Rs 26B Daily

  • Debt rose Rs 9 trillion in 360 days
  • Rs 72 owed for every Rs 100 produced
  • Debt servicing may consume all tax revenue by 2030
  • No reform at major loss-making state entities
  • A newborn's debt share is now Rs 333,041
2 min read

Pakistan debt swells to Rs 80 trillion, rising Rs 26 billion per day: Report

Pakistan's public debt surges to Rs 80.5 trillion, adding Rs 26 billion daily. Debt-to-GDP hits 72%, threatening essential services.

"Every IMF programme buys time. It does not buy reform. If we don't put our house in order, there will be no house left to put in order. - The News International report"

New Delhi, April 6

Pakistan's total public debt rose from Rs 71 trillion to Rs 80.5 trillion in 360 days, a government fiscal summary shows -- a Rs 9 trillion increase across a period the government has described as one of economic stabilisation -- a new report has said.

According to a report published in The News International, the increase translates to Rs 26 billion borrowed every day, including 19 gazetted public holidays.

Hourly, the government incurs Rs 1.08 billion in new debt. Moreover, every minute, that figure is Rs 18 million.

The report also noted that for every Rs 100 Pakistan's economy produces, Rs 72 is already owed before any public service is funded. Moreover, the Pakistan government's debt-to-GDP ratio has reached 72 per cent.

Of the Rs 9 trillion increase, Rs 2 trillion was disbursed in grants and a further Rs 2 trillion absorbed losses at state-owned enterprises.

None of the major loss-making entities -- power utilities, gas companies, railways, steel, or the national airline -- have undergone structural reform.

The government fleet currently comprises 85,500 vehicles, consuming Rs 114 billion in fuel annually.

"By 2030, debt servicing will consume Pakistani rupee (PKR) of tax revenue. Every IMF programme buys time. It does not buy reform. If we don't put our house in order, there will be no house left to put in order," according to the report.

It further pointed out that in 1971, a Pakistani child was born owing Rs 462 as its share of the national debt.

Now, that figure is Rs 333,041 -- before the child has taken its first breath, before any government service has been rendered on its behalf.

Economists and fiscal analysts cited by the report warned that as debt servicing crowds out discretionary expenditure, investment in education and health will continue to decline.

Pakistan has had four governors-general, fourteen presidents, and twenty prime ministers since independence. The current rate of debt accumulation is the fastest in its 79-year history.

- IANS

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Reader Comments

S
Sarah B
Rs 26 billion borrowed *every day*? That number is mind-boggling. The part about a newborn owing over Rs 3 lakh before taking a first breath is heartbreaking. This is the real cost of poor governance, paid by future generations.
V
Vikram M
The report hits the nail on the head: "Every IMF programme buys time. It does not buy reform." So true. Without structural reforms, especially in power and aviation sectors, this is just a downward spiral. Tough lessons for any economy.
P
Priyanka N
85,500 government vehicles costing Rs 114 billion in fuel! 🤯 The elite there seem completely disconnected from the common man's suffering. When will austerity begin at the top? This is a classic case of misplaced priorities.
R
Rahul R
As an Indian, I feel this is a sobering read. It's easy to point fingers, but we must also look inward. Are our own state electricity boards and airlines running efficiently? We need to learn from others' mistakes and strengthen our own institutions.
N
Nisha Z
The human cost is the worst part. When debt servicing eats up everything, spending on health and education vanishes. A whole generation is being robbed of its future. Very sad situation, regardless of which side of the border you're on.

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