Pakistan is expected to spend nearly Rs. 45 trillion on interest payments over the next five fiscal years, underscoring the growing burden of public debt on the country’s finances, according to official documents shared with ProPakistani.
Debt servicing costs have risen sharply and now amount to roughly two and a half years of the federal government’s annual revenue collection.
The government plans to finance these interest payments through a combination of tax and non-tax revenues.
For FY2026-27, interest payments are projected at Rs. 7.824 trillion. The annual bill is expected to increase steadily to Rs. 8.273 trillion in FY2027-28, Rs. 8.681 trillion in FY2028-29, and Rs. 9.365 trillion in FY2029-30.
By FY2030-31, Pakistan’s annual interest payments are forecast to cross Rs. 10 trillion for the first time, reaching a record Rs. 10.322 trillion.
The documents further reveal that Pakistan’s total external debt and liabilities have surpassed $104 billion, while the federal government’s direct external debt stands at more than $82 billion.
Meanwhile, total public debt in local currency terms exceeded Rs. 97 trillion as of March 2026.
