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Home > International > From Crisis to Collapse Pakistan Drowns in Debt, Growth on Life Support
International

From Crisis to Collapse Pakistan Drowns in Debt, Growth on Life Support

Published: Jul 01, 2025

International News: Pakistan's financial condition is getting bad day by day. This country, which is protecting terrorist activities and misusing resources in the name of security, is now being suppressed under its own debt. In the latest Economic Survey, the Government of Pakistan has revealed that the country's total debt has reached a record level by March 2025—76 lakh crore Pakistani rupees, which is the highest figure ever.

GDP target slipped, economy sluggish

Pakistan's economy is expected to grow at a rate of 2.7% in the financial year ending June 2025, compared to 2.5% last year. Initially, the government had set a target of 3.6% GDP growth, which has now been reduced to 2.7%. At the same time, the International Monetary Fund (IMF) estimates that Pakistan's economy will grow at 2.6% in 2025 and 3.6% in 2026. In contrast, Prime Minister Shahbaz Sharif's government has targeted 4.2% GDP growth, which seems very difficult under the current circumstances.

Debt doubled in just 4 years

The economic survey released by Pakistan Finance Minister Muhammad Aurangzeb states that Pakistan's total debt has doubled in just four years. In the year 2020-21, when it was about 39.86 lakh crores, it has now increased to more than Rs 76 lakh crore. In the last decade, this debt has increased more than five times, which is proof of the country's unstable financial policies.

Crisis on growth rate for third consecutive year

According to the Economic Survey, GDP growth in the first quarter of 2025 is estimated to be 1.37%, 1.53% in the second, and 2.4% in the third quarter. This will be the third consecutive year when Pakistan's growth rate will remain at the lower level.

Amidst the economic plight, Prime Minister Shahbaz Sharif himself has accepted that when he goes to a friendly country for help or calls, the front person feels that Pakistan has come only to ask for money. Not only this, Pakistan has been repeatedly pleading for a relief package on international forums.

People immersed in spending & poverty on terrorism

India has been raising the issue on international forums for a long time that whatever foreign aid Pakistan gets, it uses it in anti-India terrorist activities and not for the welfare of its citizens. According to the World Bank, while India has taken its citizens out of the poverty line at a record level, about 45% of Pakistan's population is living below the poverty line. Of this, 16.5% are in extreme poverty.

The direction in which Pakistan is moving on the economic front is not only a failure of its internal policies, but it is also a deep question mark on international cooperation. Till the time Pakistan removes its priorities from terrorism, neither GDP nor its debt will be reduced.

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