Islamabad(TNI) In ten years, government debt has increased to 60 to 71 percent of GDP, with debt repayments consuming 89 percent of government revenue.
Pakistan’s total public debt has increased by more than 10 percent of GDP over the past decade, rising from 60 percent in 2016 to 71 percent in 2025.
Alarmingly, debt payments consumed 89 percent of total net federal revenue in fiscal year 2025, compared to 120 percent in fiscal year 2023.
Japan’s debt-to-GDP ratio is around 200 percent, which is much higher than Pakistan’s current situation, but in Pakistan’s case, the burden of debt payments has become a serious challenge in terms of net federal revenue.
Presenting various scenarios, it was estimated that the debt-to-GDP ratio could reach 85 percent by 2035, far exceeding the limit set in the Fiscal Responsibility and Debt Limitation Act (FRDLA) passed by Parliament nearly two decades ago.
