Here’s How Much Debt Every Pakistani Owes From Birth

Every Pakistani now owes Rs. 302,000 to national and international lenders as of fiscal year 2024, up 11.3 percent compared to FY23, according to the Fiscal Policy Statement 2025 presented to the National Assembly.

The federal government also failed to contain the budget deficit which reached Rs. 7.7 trillion or 7.3 percent of GDP.

The policy statement revealed a violation of fiscal management principles. The law requires the government to restrict the federal deficit to 3.5 percent of GDP and submit reasons for any breach. Despite this, the federal deficit was set at 7.1 percent of GDP in the June 2023 budget which was against the law.

Total public debt rose by nearly 15 percent during the year to Rs. 72.3 trillion largely due to higher interest payments and currency depreciation. However, as a percentage of GDP, public debt declined from 74.8 percent in June 2023 to 67.2 percent in June 2024.

The current expenditures exceeded budget estimates by 5.5 percent, driven by a rise in markup payments amid high interest rates. Expenditures under the Public Sector Development Program (PSDP) were cut by Rs. 218 billion to Rs. 1.03 trillion.

The report noted signs of economic stability including reduced inflation, a surplus in the primary fiscal balance, a stable exchange rate, and a negligible current account deficit. However total revenues underperformed and contributed to the 7.3 percent fiscal deficit.