Islamabad: Pakistan’s total debt has climbed to Rs. 82,000 billion by the end of May, according to the latest State Bank data, raising fresh concerns over the country’s fiscal stability. The debt stock increased by Rs. 5.9 trillion over the past year, averaging nearly Rs. 16 billion in new debt every day. Rising domestic borrowing, higher repayment costs, and weak debt management continue to put pressure on public finances and budgeting priorities. This growing burden can reduce development spending, delay infrastructure projects, increase inflationary pressure, and weaken investor confidence. For real estate and construction, expensive financing and slower public investment may affect market activity. Can Pakistan manage debt before it slows economic growth further?
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