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Pakistan’s debt has reached an alarming level, with every citizen now owing Rs 318,252, according to the Economic Policy & Business Development Think Tank. The report warns that without urgent reforms, the country risks sliding deeper into a debt crisis.
Figures reveal that per-person debt has surged from Rs 90,047 in 2014 to Rs 318,252 in 2024 an average annual growth of 13 percent. Pakistan’s public debt-to-GDP ratio now stands at 70.2 percent, well above the 60 percent legal ceiling under the Fiscal Responsibility and Debt Limitation Act (2005).
In regional terms, Pakistan’s debt ratio is second only to Sri Lanka (96.8 percent) and higher than Thailand (61.1 percent), India (57.1 percent), Indonesia (40.2 percent), and Bangladesh (36.4 percent). Experts warn that the country is trapped in a vicious cycle where high interest rates and currency devaluation keep adding to the debt burden.
The debt report further highlights a 71 percent rupee devaluation since 2020, peak interest rates of 22 percent in FY2023-24, and repeated violations of debt sustainability limits. Economists stress the need for structural reforms, export growth, and debt restructuring to avert a full-blown financial collapse similar to Sri Lanka’s.
Pakistan’s Debt Snapshot
| Year | Per Person Debt (Rs) | Debt-to-GDP Ratio |
| 2014 | 90,047 | ~63% |
| 2024 | 318,252 | 70.2% |
| Legal Ceiling | – | 60% (FRDL Act) |
| Regional Comparison | – | Higher than India, Bangladesh, Indonesia |
Can Pakistan break free from its growing debt trap without large-scale reforms and restructuring?
