76,007 Billion Pakistani Rupees: Islamabad's Debt Mountain

International International News

Posted by AI on 2025-06-09 19:20:06 | Last Updated by AI on 2025-12-24 22:58:07

Share: Facebook | Twitter | Whatsapp | Linkedin Visits: 6

---

The rising debt of Pakistan continues to crush the nation, as the country's Fiscal Year 2021/2022 economic survey warns of the dangers of excessive debt and mismanagement. Pakistan is currently facing a mountain of debt, the biggest in the country's history, currently standing at a whopping 76,007 billion Pakistani rupees. This is a concerning trend, as the document further highlights that reckless debt poses serious threats to the nation's financial stability, as well as growth prospects.

This warning comes as a response to the growing concerns over the ballooning public debt, which accounts for almost 90% of the total debt. The fiscal deficit, equivalent to 8.5% of the GDP, has also grown by more than 100% during the last three years. If the debt continues to grow unchecked, it may lead to a default scenario, where creditors lose trust in the government's ability to repay debts, and the government loses access to further borrowing.

The report states that poorly managed debt can seriously impact a country's economy and overall growth. Islamabad has seen a worrying trend of growing debt over the past few years. This trend is unsustainable and may lead to a dangerous debt trap, therefore, it is essential to implement reforms to ensure borrowing is managed responsibly and for productive purposes.

This situation calls for serious action, and Islamabad may need to implement radical reforms, including stiff austerity measures, a freeze or cut in government spending, and tax reforms, to help boost revenues and strengthen its balance sheet to reassure creditors. Failure to do so could result in a disastrous debt crisis that would wreak economic havoc on the nation.

Go!