ISLAMABAD – Pakistan’s national debt touched another high, with every citizen of the nuclear armed nation now owes an average of Rs 318,252, data shared by Economic Policy & Business Development (EPBD) Think Tank shows.
The report shows by EPBD shows that per-capita debt jumped more than three times in last ten years, rising from Rs 90,047 in 2014 to Rs 318,252 in 2024, marking an average annual growth rate of 13 percent.
Pakistan’s public debt-to-GDP ratio also climbed to 70.2 percent, well above the legal ceiling of 60 percent established under the Fiscal Responsibility and Debt Limitation Act, 2005. In regional comparisons, only Sri Lanka (96.8 percent) surpasses Pakistan, while Thailand (61.1 percent), India (57.1 percent), Indonesia (40.2 percent), and Bangladesh (36.4 percent) remain below.
The EPBD report also highlights warning signs that could worsen the fiscal situation: a 71 percent depreciation of the rupee since 2020, peak interest rates of 22 percent in 2023-24, and repeated breaches of debt sustainability limits.
It further warned that the country of 242 million is caught in a debt trap, where high interest rates fuel currency depreciation, which in turn increases debt obligations, creating a self-reinforcing cycle. EPBD further called for urgent fiscal reforms, measures to boost exports, and comprehensive debt restructuring.
