By Iftikhar Mashwani
ISLAMABAD:Pakistan’s external debt has nearly doubled over the past decade, reaching $135.107 billion in 2025, compared with $68.673 billion in 2015, according to the World Bank’s International Debt Report 2026.
The figures highlight the growing financial challenges facin
g the country and the increasing pressure of debt repayments on its economy.
The report reveals that Pakistan’s total external debt includes $107.076 billion in public and publicly guaranteed debt, $17.58 billion in private non-guaranteed debt, and $10.45 billion in short-term obligations.
Among Pakistan’s creditors, China remains the largest single lender, with outstanding loans of $22.4 billion, followed by the World Bank with $19.2 billion and the Asian Development Bank with $16.83 billion. Public debt owed to multilateral institutions stands at $56.83 billion, while bilateral lenders account for $42.43 billion.
The report also highlights the rising cost of private borrowing. Interest rates on private debt averaged 8.6 percent, significantly higher than the 3.6 percent charged on public debt. Furthermore, private loans generally have shorter repayment periods, averaging just three years compared with 16 years for public borrowing.
Pakistan’s external debt currently represents 34 percent of its gross national income, while debt servicing consumes approximately 33 percent of export earnings.
The World Bank has emphasized the need for stronger exports, improved economic management and access to more favourable financing terms.
Without sustainable borrowing policies and long-term economic reforms, Pakistan could face increasing difficulties in meeting its external financial obligations.
