Surge in Debt Repayments: Interest Payments Soar from 2 Trillion to 8.6 Trillion in 6 Years

Islamabad: Pakistan’s debt servicing costs have witnessed a dramatic surge, with interest payments rising from 2 trillion rupees to 8.6 trillion rupees in just six years. According to a report by Topline Research, the growing national debt and high interest rates have driven up the cost of servicing loans.
The report highlights that the share of interest payments in the country’s Gross Domestic Product (GDP) has doubled, reaching nearly 8%. The increase in debt repayment costs has significantly impacted the availability of financial resources for key developmental projects, health, and education.
As a result, vital sectors have faced substantial budgetary constraints, hindering the country’s ability to invest in essential services and infrastructure.