Islamabad – Pakistan is projected to spend approximately Rs 45,000 billion on interest payments for public debt over the next five years, reflecting growing fiscal pressures. The government’s revenue, both tax and non-tax, will partly finance these obligations, with FY2026-27 alone requiring around Rs 7,824 billion. Analysts warn that rising debt servicing costs may limit development spending and strain economic stability. The trend underscores the urgent need for sustainable fiscal policies, debt management reforms, and efficient revenue collection strategies. Authorities are coordinating with the IMF to align fiscal targets and ensure macroeconomic stability in the coming years.
