Overview
- The Economic Survey, released Thursday, reported government external debt of $92.2 billion at end‑March 2026 and total public debt of Rs83.285 trillion, with external debt rising by $364 million in the first nine months of FY26.
- Multilateral lenders account for the largest share of external debt at about $42.48 billion while IMF obligations total $9.89 billion and the federal government holds roughly $82.26 billion of the stock.
- The central government’s external portfolio is skewed to long maturities, with $68.41 billion classified as long‑term and $13.85 billion as short‑term, a pattern officials say cuts near‑term refinancing pressure.
- Budget documents for FY27 plan $23.38 billion in foreign borrowing and allocate about Rs8.051 trillion—roughly 42.9% of the budget—to interest and principal payments, signaling continued reliance on external finance.
- The State Bank’s broader measure of external liabilities stands at $137.55 billion and contingent liabilities rose to Rs4,322 billion, leaving limited fiscal space and raising the risk that debt service needs will crowd out public programs.