Pakistan External Debt Reaches 135 Billion Dollars

The Government of Pakistan saw its external debt nearly double over the last decade, reaching 135.11 billion dollars in 2025. According to the World Bank's International Debt Report 2026, the debt stock rose from 68.67 billion dollars in 2015, with public and publicly guaranteed borrowings accounting for 107.08 billion dollars of the total.

China is the largest individual creditor with 22.4 billion dollars in outstanding loans, followed by the World Bank at 19.2 billion dollars and the Asian Development Bank at 16.83 billion dollars. While official creditors offer lower interest rates averaging 3.6 percent and longer maturities, private credit is more expensive, averaging 8.6 percent interest with shorter repayment periods.

To manage these financial pressures, China extended the maturities of 2 billion dollars in loans in 2025. Additionally, the International Monetary Fund disbursed 2.3 billion dollars under its Extended Fund Facility and Resilience and Sustainability Facility to support economic stability and reform.