Pakistan to Pay Off Rs. 60 Trillion of its Total Debt By 2032

Pakistan is scheduled to pay nearly Rs. 60 trillion in debt servicing for the period 2024-2032 of which Rs. 18.3 trillion is foreign debt while Rs. 41.3 trillion is domestic debt. According to official documents seen by ProPakistani, the Finance Division has planned debt servicing up till the calendar year 2040. Debt payments are projected to decline significantly with every passing year, with Rs. 6.1 trillion planned to be paid in full during 2033-2040. Pakistan’s total debt reached Rs. 71 trillion by June this year. According to the Ministry of Finance, 66 percent of this debt is domestic, while the remaining 34 percent is foreign. As of June, the country’s domestic debt stood at Rs. 47 trillion while Rs. 24 trillion was foreign. It bears mentioning that our domestic debt primarily comes from the issuance of government securities, whereas external debt is sourced from development partners and commercial entities. The Ministry of Finance has also outlined a debt repayment schedule extending from 2024 to 2040. For the current year, Rs. 18.7 trillion will be repaid, followed by Rs. 8.7 trillion in 2025. The repayment plan continues with Rs. 7.6 trillion in 2026 and Rs. 4.3 trillion in 2027.   By 2028, the government plans to repay Rs. 6 trillion, with Rs. 8.4 trillion scheduled for 2029. In the subsequent years, Rs. 2.4 trillion is set to be repaid in 2030, followed by Rs. 2.6 trillion in 2031, with a further Rs. 1.1 trillion payment next year (2032).