The Shahbaz government, supported by military generals, has further increased its dependence on debt. During the first 9 months of the government from March to November 2024, government debt increased by a total of Rs 5,556 billion. According to a document from the State Bank of Pakistan, the federal government’s debt stood at Rs 17,366 billion as of November 2024, which was Rs 64,810 billion in February 2024. According to the document, in the first 9 months of the current government, local debt increased by Rs 5,556 billion, but in the same period, the central government’s foreign debt decreased by Rs 356 billion. According to the document, as of November 2024, the federal government’s local debt was Rs 48,585 billion and foreign debt was Rs 21,780 billion, while as of February 2024, the federal government’s local debt was Rs 42,675 billion and the central government’s foreign debt was Rs 22,134 billion. In the current government, the supervisors A large increase in overall debt was recorded compared to 2018. It should be noted that during the 6 months of the supervision period, i.e. from September 2023 to February 2024, the federal government’s debt increased by Rs. 840 billion.
According to the document, in February 2024, the last month of the caretaker period, the federal government’s debt was Rs 64,810 billion and in August 2023, the federal government’s debt was Rs 63,970 billion. Meanwhile, according to a United Nations report , Pakistan’s economic growth rate is expected to be 3.4 percent in 2025 and 4.2 percent by 2026. The report said that Pakistan’s economic activity is expected to expand moderately and GDP is expected to grow by 3.4 percent during 2025 as the economy recovers from the economic downturn during the fiscal year 2022–2023. However, risks to the economic scenario are on the downside due to a possible increase in geopolitical tensions, a decrease in external demand, ongoing debt problems and social unrest. In addition, since the region is highly vulnerable to the effects of climate disasters, severe weather events are a major risk.