- By Ajeet Kumar
- Wed, 12 Aug 2026 03:37 PM (IST)
- Source:JND
- Pakistan's government debt hit Rs 83.6 trillion.
- Debt increased 75% in four years under Sharif.
- High spending fuels crisis despite revenue growth.
Pakistan is moving towards total bankruptcy as a new report by its own government has exposed that the debt has risen sharply under the Shehbaz Sharif-led government. The government debt has risen over the past four years, The Express Tribune reported.
By the end of June this year, the debt, excluding loans from the International Monetary Fund and some other liabilities, reached Rs 83.6 trillion (Rs 83,000,000,000,000). The report claimed the latest data shows the debt has increased nearly 75 per cent compared to four years ago, even though government revenues grew a lot during the same period.
The State Bank of Pakistan released its debt bulletin for the fiscal year 2025-26, covering only the central government’s direct debt. The debt stood at Rs 83.6 trillion at the end of June, Rs 5.8 trillion, or 7.3 per cent, higher than the previous year.
Latest figure does not incude IMF loans
This figure does not include IMF loans and certain bilateral loans that appear on the State Bank’s books. The central bank plans to release the full public debt details next month.
Looking back to June 2022, when the Pakistan Democratic Movement (PDM) government presented its first budget after removing Imran Khan, the debt has grown by Rs 35.8 trillion. Over these four years, the federal debt rose by 75 per cent.
The rate of increase slowed somewhat because the Pakistani rupee gained value against foreign currencies and the finance ministry kept a tight check on civil government spending. However, the ministry sometimes issued extra grants, loosening those controls.
During most of this period, the government was led by Shehbaz Sharif. There was a caretaker government from July 2023 to February 2024, but the budget for that period had also been prepared by the PDM government.
Pakistan stayed under IMF programmes throughout these years. The government raised taxes significantly, including higher petroleum levies, increased taxes on salaried people, the real estate sector, and companies. Even so, spending stayed high. This was mainly because of heavy debt repayment costs, continued social protection programmes, running ministries that should have been transferred to provinces, and funding development projects that are normally provincial responsibilities.
Revenue jumped by 107%
According to figures from the Ministry of Finance, the federal government’s total revenues (before sharing money with the provinces under the National Finance Commission) jumped by 107 per cent in four years. At the same time, government spending rose by 66 per cent. A large part of this spending went into areas that fall under provincial control.
The Ministry of Finance has not yet published the final fiscal numbers for the last year. The figures used here are based on the revised estimates given in the budget.