Pakistan’s financial challenges have reached a critical point as the country’s total national debt has soared to an all-time high of Rs76.045 trillion, according to the latest report from the State Bank of Pakistan (SBP).

This alarming surge in public debt has triggered fresh concerns over the country’s economic stability and fiscal management.

The SBP report revealed that by May 2025, the federal government’s total debt crossed the Rs76 trillion mark, raising serious questions about Pakistan’s ability to manage its financial obligations. Experts are now warning that the Pakistan national debt crisis could severely impact economic growth, inflation, and future development plans.

Breaking down the figures, the country’s domestic debt stood at Rs53.46 trillion, while external debt amounted to Rs22.585 trillion. Shockingly, in just the month of May, the debt increased by a massive Rs1.109 trillion, underlining the urgency of fiscal reforms.

Comparative data shows the depth of the crisis: in April 2025, the national debt was Rs74.936 trillion, meaning it jumped by over Rs1 trillion in just a month. Year-on-year, from May 2024 to May 2025, the debt expanded by an eye-watering Rs8.312 trillion.

Looking at the bigger picture, the first 11 months of the 2024-25 fiscal year saw debt swelling by Rs7.131 trillion. For context, Pakistan’s total debt was Rs68.914 trillion in June 2024, showing how rapidly the situation has deteriorated in less than a year.

Economists warn that if this pace continues unchecked, the Pakistan national debt crisis could spiral out of control, forcing the government into deeper borrowing cycles, currency devaluation, and tougher austerity measures.

This sharp rise in debt raises concerns about Pakistan’s ability to service its loans without sacrificing development spending, subsidies, or essential public services. Financial analysts are calling for urgent reforms, including broadening the tax base, curbing unnecessary expenditure, and reducing reliance on external borrowing.