Pakistan paid $14.436 billion in external public debt servicing during fiscal year 2025-26, against $16.16 billion in disbursements, according to the Ministry of Economic Affairs (MEA). The payments comprised $11.198 billion in principal repayments and $3.238 billion in interest.
In its annual report on Foreign Economic Assistance, the MEA said external public debt stood at $98.075 billion as of June 30, 2026. This is $6.28 billion, or 6.84 percent, higher than the $91.795 billion recorded at the end of FY25. Net transfers for the year were $4.417 billion.
Debt servicing in 2024-25 stood at $13.32 billion. Disbursements reached 81 percent of the $19.923 billion budget target for FY26, falling short by about 19 percent. The government also secured new commitments of $8.951 billion during the year.
Budgetary support and balance of payments financing accounted for $9.375 billion of disbursements. The funds were used to address fiscal imbalances, strengthen foreign exchange reserves and stabilise the exchange rate. Naya Pakistan Certificates contributed 33 percent ($3.050 billion), and time deposits from friendly countries 32 percent ($3 billion).
Foreign commercial banks and bonds together provided 31 percent, and the IMF 4 percent. Project financing disbursements totalled $3.435 billion, programme financing $1.329 billion and commodity financing $2.019 billion.
Project funds went mainly to energy and power, environment, climate and resilience, water, transport and communication, education, and other social and economic sectors. Development partners also supported climate change mitigation and adaptation, resilience building, rehabilitation and reconstruction, and disaster risk reduction.
Of the total external public debt, $59.931 billion was owed to multilateral and bilateral development partners. Of the new commitments of $8.951 billion, $3.808 billion (42 percent) was for budgetary support and balance of payments.
Project financing accounted for $2.768 billion (31 percent) and programme financing for $1.407 billion (16 percent), contributed by the Asian Development Bank and World Bank. Commodity financing of $967 million (11 percent) came from the International Islamic Trade Finance Corporation.
Among multilateral partners, the World Bank disbursed $2.025 billion (40 percent of the multilateral total), the ADB $1.772 billion (35 percent) and the Islamic Development Bank $1.087 billion (22 percent). Among bilateral partners, Saudi Arabia was the largest contributor at $1.013 billion, followed by China at $501 million.
Of the new commitments, $6.809 billion were for federal projects and programmes and $2.142 billion for provincial ones.
