Sindh’s foreign debt jumps 49% in two years to $5.6 billion, the fastest of any province, finance ministry document shows

Punjab still owes the most at $6.4 billion, but the gap has narrowed to under $800 million as combined provincial foreign debt reaches $15.63 billion.

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High-rise towers of the Clifton skyline in Karachi rising above low-rise neighbourhoods
The Clifton skyline in Karachi, Sindh’s capital. File photo. — KTOWNBOY103/WIKIMEDIA COMMONS (CC0)

— Sindh’s foreign debt rose by $1.84 billion, or nearly 49 per cent, in the two years to June 2026, the fastest increase of any province, according to a Ministry of Finance document.

The province’s outstanding foreign loans climbed from $3.78 billion in June 2024 to $5.62 billion. That accounted for about 65 per cent of the $2.82 billion added across all provincial and regional governments, whose combined foreign debt reached $15.63 billion.

Punjab still owes the most, but its debt grew far more slowly, rising about 6 per cent to $6.40 billion. The gap between the two provinces has narrowed to less than $800 million, and Sindh now holds about 36 per cent of all provincial foreign debt, up from about 30 per cent two years ago.

Khyber Pakhtunkhwa’s foreign debt rose 25 per cent to $2.97 billion. Balochistan’s went up by $33 million to $390 million, and Gilgit-Baltistan’s by $7 million to $69 million. Azad Jammu and Kashmir was the only region to cut its foreign debt, which fell by $29 million to $180 million.

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Published by Thursday Media International thursday.media