Pakistan’s total external debt rose to $135.11 billion at the end of 2025, nearly double the $68.67 billion recorded a decade earlier in 2015, according to the World Bank’s International Debt Report 2026, published on Friday, November 6, 2026.
What happened?
The World Bank’s International Debt Report 2026 shows Pakistan’s external debt stock increased by 4 per cent during 2025, from $129.92 billion a year earlier to $135.11 billion. The figures cover all external borrowing by the government, public-sector entities and private borrowers, and form part of a wider assessment in which external debt across low- and middle-income countries rose 5.5 per cent to a record $9.4 trillion.
Key details
- Total external debt stood at $135.11 billion at the end of 2025, up from $68.67 billion in 2015.
- Public and publicly guaranteed debt, including IMF credit and Special Drawing Rights allocations, accounted for $107.08 billion — about 79 per cent of the total. Private non-guaranteed debt stood at $17.58 billion and short-term debt at $10.45 billion.
- China was the largest individually identified creditor, with $22.42 billion outstanding — about 53 per cent of Pakistan’s bilateral debt. The World Bank’s International Development Association held $19.21 billion and the Asian Development Bank $16.83 billion.
- New borrowing from official creditors in 2025 carried an average interest rate of 3.6 per cent, with an average maturity of 16 years and a four-year grace period. New commitments from private creditors averaged 8.6 per cent interest, with a three-year maturity and a one-year grace period.
- External debt was equivalent to 34 per cent of gross national income in 2025, down 5.3 per cent on the previous year. Debt servicing absorbed 33 per cent of export earnings, while external debt was more than three times annual exports.
What it means for people in Pakistan
The figures show how much of Pakistan’s export earnings go towards repaying foreign loans — about one rupee in every three earned abroad. The gap between cheap official lending and expensive private borrowing also matters: money borrowed on easier terms leaves more room in the budget for public services, while costlier private debt adds pressure. Growing exports and securing better borrowing terms remain the clearest ways to ease that burden over time.
