Pakistani Citizen Debt Soars to PKR 295,000 Amid Financial Strain

The average debt per Pakistani has skyrocketed to PKR 295,000 due to prolonged reliance on international loans. Pakistan's total debt stands at PKR 71.24 trillion in 2024, a 67.2% rise over GDP. The surge necessitates urgent economic reforms as domestic and external debts continue to rise.

The average debt burden on every Pakistani citizen has soared to a staggering PKR 295,000. This alarming figure reflects the persistent practice of successive governments managing state affairs through international loans and debt. Currently, Pakistan's total debt has increased by PKR 8.36 trillion, reaching PKR 71.24 trillion in 2024.

In 2023, the nation's debt to international lenders was PKR 62.88 trillion. The debt, now 67.2% higher than Pakistan's Gross Domestic Product (GDP), signifies a deepening financial crisis, according to a report from the Ministry of Finance, cited by ARY News.

The rise in debt reveals growing financial pressures. Domestic debt has surged by PKR 8.350 trillion to PKR 47.160 trillion, while external debt stands at PKR 33.062 trillion. Net government external debt is PKR 21.75 trillion. ARY News also notes an addition of PKR 292 billion to IMF loans, totaling PKR 2.33 trillion. Federal government bonds account for the largest share of domestic debt at PKR 32.8 trillion.

The Ministry's report mentions significant components of the debt such as Pakistan Investment Bonds (over PKR 28 trillion), Sukuk bonds (PKR 4.77 trillion), and prize bonds (PKR 345 billion). Domestic foreign currency loans total PKR 374 billion, and Naya Pakistan Certificates contribute PKR 84 billion.

The substantial rise in domestic and external debt highlights an urgent requirement for economic reform and efficient debt management to stabilize Pakistan's financial health.

(With inputs from agencies.)