Pakistan faces over $23 billion in external debt payments this fiscal year: Report

Pakistan will need to pay more than $23 billion in external debt during the current fiscal year that began on July 1, local media reported, amid the country’s persistent financial pressures despite claims of economic stabilisation.

The News reported that out of the total external debt servicing of $23 billion for 2025-26, around $12 billion are temporary deposits from friendly countries, which Islamabad expects to roll over. These include $5 billion from Saudi Arabia, $4 billion from China, $2 billion from the United Arab Emirates, and about $1 billion from Qatar.

Even with rollovers, Pakistan will still have to repay nearly $11 billion to multilateral and bilateral creditors, international bondholders, and commercial lenders this fiscal year.

Some of the major payments during the current fiscal include two bond maturities worth $1.7 billion, commercial loans of $2.3 billion, $2.8 billion to multilateral lenders such as the World Bank, Asian Development Bank, Islamic Development Bank, and Asian Infrastructure Investment Bank, and $1.8 billion in bilateral loans, the report said.

Pakistan’s total debt stood at Rs 76.01 trillion at the end of March, comprising domestic debt of Rs 51.52 trillion and external debt of Rs 24.49 trillion, according to the Pakistan Economic Survey 2024-25.

Of the external public debt, $87.4 billion includes government external debt and liabilities owed to the International Monetary Fund (IMF).

Debt servicing remains Pakistan’s largest expenditure item, with Rs8.2 trillion allocated for domestic and external payments in 2025-26, accounting for nearly 47% of the total federal budget of Rs 17.57 trillion.