ISLAMABAD: Pakistan is facing mounting fiscal pressure as interest payments on public debt are estimated to reach Rs8 trillion in the upcoming fiscal year, potentially leaving the federal government with only Rs3 trillion for other expenditures.
Economic experts have warned that the country’s financial challenges could intensify as the debt burden continues to grow. Annual interest payments are projected to rise to Rs10 trillion by 2030-31.
According to economists, an increasing share of national revenue is likely to be consumed by debt servicing, placing additional pressure on the country’s fiscal position and limiting the government’s available resources.
They warn that heavy interest payments could constrain government spending on development projects and other economic sectors, leaving fewer funds available for public investment and growth-related initiatives.