Global financial institutions have released the list of the world’s most indebted countries for 2025, and Pakistan is not among the top 10. This is a notable change, as many countries continue to struggle with rising national debt. The rankings are based on three key factors, Total national debt, Debt compared to GDP and Public sector borrowing.
For 2025, Japan remains the most indebted country, with its debt reaching 242% of its GDP. Other countries on the list include Eritrea, Singapore, Greece, Italy, and the United States. The numbers show that high national debt is not only a problem for developing countries, many advanced economies face the same challenge.
Top 10 Most Indebted Countries (2025)
| Rank | Country | Debt-to-GDP Ratio |
|---|---|---|
| 1 | Japan | 242% |
| 2 | Eritrea | 210% |
| 3 | Singapore | 173% |
| 4 | Greece | 149% |
| 5 | Italy | 138% |
| 6 | Bahrain | 131% |
| 7 | Sudan | 128% |
| 8 | Maldives | 125% |
| 9 | United States | 124% |
| 10 | France | 116% |
Pakistan’s absence from the top 10 list suggests that, despite its economic struggles, it is not among the world’s worst performers when it comes to debt size relative to GDP. Still, experts say Pakistan must continue working on better financial management, reducing borrowing, and increasing revenue.
The overall report highlights a growing concern worldwide: rising debt levels can affect economic stability, slow development, and increase financial risks. Countries are now expected to take stronger measures to control debt and improve long-term economic health.
