Pakistani Government Debt Surges to PKR 67.5 Trillion by 2024, Reveals Finance Ministry

Islamabad: The Finance Ministry has disclosed the details of government debt from 2008 to 2024 in the Senate, revealing a dramatic increase in the national debt. According to the data, the government’s debt stood at PKR 6.1 trillion in June 2008 and has surged to PKR 67.5 trillion by 2024, marking an increase of PKR 61.4 trillion.
During a Senate session on questions and answers, the Finance Ministry provided a breakdown of the debt incurred from 2008 to 2024. By the end of June 2024, commercial banks had extended a total of PKR 38,531 billion in loans. Of this amount, PKR 27,246 billion was loaned to the government sector, while PKR 8,776 billion was provided to the private sector, accounting for 22.8% of the total loans.
In June 2008, internal debt was PKR 3.3 trillion and external debt was PKR 2.9 trillion. By June 2024, internal debt had risen to PKR 43.4 trillion and external debt to PKR 24.1 trillion, reflecting increases of PKR 40.2 trillion and PKR 21.3 trillion, respectively.
The increase in debt has been attributed to several factors: a PKR 1.02 trillion rise due to primary deficits, a PKR 3.23 trillion increase from interest expenses, and an additional PKR 1.89 trillion from other causes.
Historical debt figures show that in 2008, the national debt was PKR 6.1 trillion. By 2013, it had risen to PKR 12.7 trillion, reaching PKR 14.3 trillion in 2018. In 2019, the debt was PKR 32.7 trillion, and it climbed to PKR 49.2 trillion by 2022. The debt further increased to PKR 62.9 trillion in 2023 and stood at PKR 67.5 trillion in March 2024. Notable increases include PKR 7.8 trillion in 2019, PKR 9.4 trillion in 2022, and PKR 13.6 trillion in 2023.
The Finance Ministry refuted claims that the debt for the fiscal year 2023-24 exceeded the combined figures of the previous two years. They clarified that in fiscal years 2021-22, 2022-23, and 2023-24, the debt increased by PKR 9.4 trillion, PKR 13.7 trillion, and PKR 8.4 trillion, respectively. The ministry also stated that not all tax revenues were spent on debt repayment; rather, there was a significant increase in tax revenues collected by the Federal Board of Revenue (FBR), with an increment of PKR 6.1 trillion in 2021-22, PKR 7.2 trillion in 2022-23, and PKR 9.3 trillion in 2023-24.
Additionally, the Finance Ministry reported that by the end of June 2024, commercial banks had provided PKR 8,776 billion in loans to the private sector, representing 22.8% of total loans. Government institutions received PKR 2,139 billion in loans, accounting for 5.6% of the total.
The ministry also highlighted its goal to increase the number of registered taxpayers, aiming for 3.7 million by 2024/25, 3.9 million by 2025/26, 4.1 million by 2026/27, 4.3 million by 2027/28, and 4.5 million by 2028/29.