Pakistan’s total external debt and liabilities have reached 138 billion dollars, according to the Finance Ministry. This amount includes public-sector borrowing, private-sector loans, and debt taken on by public-sector enterprises.
Out of the total figure, around 92 billion dollars is external public debt. Officials say most of this borrowing is long term and taken on concessional terms, meaning it carries lower interest rates and easier repayment conditions compared to commercial loans.
Commercial borrowing and Eurobonds each account for about 7 percent of the total external debt. The ministry stated that the overall average interest rate on external debt currently stands at around 4 percent.
| Category | Amount / Share |
|---|---|
| Total External Debt | 138 billion USD |
| External Public Debt | 92 billion USD |
| Average Interest Rate | 4 percent |
| Commercial Loans Share | 7 percent |
| Eurobonds Share | 7 percent |
Interest payments have increased in recent years. Pakistan paid 1.99 billion dollars in interest in fiscal year 2022. This amount rose to 3.59 billion dollars by fiscal year 2025.
The increase reflects higher global interest rates and changes in external financing conditions, even though part of the funding has come through concessional arrangements supported by the IMF.
The Finance Ministry said that debt management remains careful and transparent. It stressed that most of the debt is long term and not high cost.
Officials also urged the public to view debt figures in proper context, noting that repayment structure and interest terms matter more than headline numbers alone.
