Pa’s External Debt Surges to $135.1 Billion in a Decade

News Desk

ISLAMABAD: Pakistan’s total external debt has nearly doubled over the past decade, reaching $135.1 billion by 2025, as reported in the World Bank’s International Debt Report 2026.

This significant increase from $68.7 billion in 2015 highlights the growing financial obligations of the country.

The report details that the external debt comprises $107.1 billion in public and publicly guaranteed debt, $17.6 billion in private non-guaranteed debt, and $10.5 billion in short-term debt.

Notably, $56.8 billion of the public debt is owed to multilateral creditors, while bilateral creditors account for $42.4 billion, and private creditors hold $7.8 billion.

China stands out as Pakistan’s largest single creditor, with an outstanding amount of $22.4 billion, followed by the World Bank at $19.2 billion and the Asian Development Bank (ADB) at $16.8 billion.

This dependency on external borrowing raises concerns about the sustainability of Pakistan’s fiscal health and its ability to manage repayments amid economic challenges.

As the country grapples with rising debt levels, policymakers are urged to explore strategies for economic reform and debt management.

Upcoming discussions among financial authorities and international partners will be crucial in addressing these challenges and ensuring economic stability.