ISLAMABAD (The Thursday Times) — Pakistan paid $14.44 billion to service its external public debt in the 2025-26 fiscal year, about $3.24 billion of it in interest, according to the Ministry of Economic Affairs’ annual report on foreign economic assistance, released on Wednesday.
The remaining $11.2 billion went on repaying principal. Over the same year, which ended on June 30, the government received $16.16 billion in foreign financing, so new borrowing more than covered the repayments.
As a result, external public debt kept rising. It stood at about $98.08 billion at the end of June, up from $91.8 billion a year earlier, an increase of roughly $6.3 billion, or 6.8 percent, the report shows.
Where the money came from
Disbursements reached 81 percent of the $19.92 billion the government had planned to borrow abroad. The largest share, about $9.38 billion, went to budget support and balance-of-payments needs, meant to shore up foreign exchange reserves and steady the rupee.
Within that, Naya Pakistan Certificates brought in $3.05 billion and time deposits from friendly countries $3 billion. Foreign commercial banks and bonds made up 31 percent of budget support, and the International Monetary Fund 4 percent.
Project financing came to $3.44 billion, programme financing to $1.33 billion, and commodity financing to $2.02 billion.
Among lenders, the World Bank disbursed $2.03 billion, the Asian Development Bank $1.77 billion, and the Islamic Development Bank $1.09 billion. Saudi Arabia was the largest bilateral lender at $1.01 billion, followed by China at $501 million.
Who Pakistan owes
Multilateral and bilateral development partners hold $59.93 billion of the external public debt. The government also secured $8.95 billion in fresh financing commitments during the year, $6.81 billion of it for federal projects and programmes and $2.14 billion for the provinces.
The figures add to the picture of an economy whose record reserves rest partly on rolled-over loans, and whose total public debt is nearing Rs91 trillion even as it falls as a share of the economy.
