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Pakistan Confirms $138 Billion External Liabilities, Rebuts 8% Interest Claim

Officials say the borrowing mix is largely concessional with an average external public debt cost near 4%.

Overview

  • Finance Ministry stressed that external public (government) debt is about $92 billion, distinct from broader external liabilities.
  • Public external interest outflows climbed from $1.99 billion in FY2022 to $3.59 billion in FY2025, which the ministry put at an 80.4% rise rather than 84%.
  • The portfolio breakdown shows roughly three-quarters concessional multilateral and bilateral financing, with about 7% in commercial loans and 7% in long-term Eurobonds.
  • Pakistan secured roughly $10.6 billion in new loans last fiscal year while servicing $13.3 billion, with multilateral partners providing about $5.06 billion led by the ADB and World Bank.
  • Annual debt servicing, including principal and interest, totals about $13.32 billion, and official data indicate net external debt increased by approximately $1.71 billion last year.