Pakistan’s external debt climbs to $92.2bn by March, growth in borrowing slows

Pakistan's total external public debt stood at $92.2 billion at the end of March 2026, after increasing by $364 million during the first nine months of the current fiscal year, according to the Economic Survey 2025-26 released on Thursday.

The increase was substantially lower than the $883 million rise recorded during the same period of the previous fiscal year, reflecting a slowdown in the pace of external debt accumulation.

Government external debt amounted to $82.26 billion, while outstanding liabilities to the International Monetary Fund (IMF) totaled $9.89 billion, accounting for around 11% of the country's external debt stock.

The survey showed that IMF-related obligations comprised $3.62 billion owed by the federal government and $6.27 billion owed by the State Bank of Pakistan.

Multilateral development partners remained Pakistan's largest external creditors. Loans from the World Bank, Asian Development Bank and other multilateral institutions reached $42.48 billion, representing 46% of total external debt.

Bilateral debt from non-Paris Club countries stood at $19.03 billion, or about 21% of total external debt, while obligations to Paris Club members rose to $5.497 billion, accounting for roughly 6%.

Pakistan's international market borrowings remained relatively limited, with outstanding Eurobonds and international sukuk totaling $6.3 billion. Loans from foreign commercial banks amounted to $6.32 billion, with most carrying maturities ranging from one to three years.

According to the survey, Pakistan's external debt profile continues to be dominated by longer-term financing. Long-term debt stood at $68.41 billion, compared with $13.85 billion in short-term obligations.

The government said its strategy of relying more heavily on longer-tenor financing instruments was helping reduce refinancing risks and ease repayment pressures.

Naya Pakistan Certificates, Pakistan Banao Certificates and non-resident investments in government securities collectively accounted for about 1.5% of total external debt.

The figures were released ahead of the federal budget announcement and amid ongoing discussions with the IMF over FY27 fiscal targets and programme implementation.

The survey stated that stronger revenue mobilisation, expenditure rationalisation, moderating inflation and structural economic reforms are expected to gradually improve debt sustainability and support fiscal stability over the medium term.