Pakistan’s External Debt Reached $135.1 Billion in 2025

The World Bank’s International Debt Report 2026, released on 5 November 2026, recorded Pakistan’s external debt at 135.1 billion at the end of 2025, nearly double the 68.67 billion recorded in 2015. China was its largest individual creditor, with $22.4 billion in outstanding loans.

Debt composition and creditors

The 2025 total comprised 107.076 billion in public and publicly guaranteed debt, 17.58 billion in private non-guaranteed debt and 10.45 billion in short-term debt. Of public and publicly guaranteed debt, 56.83 billion was owed to multilateral creditors, 42.43 billion to bilateral creditors and 7.8 billion to private creditors. The World Bank held 19.2 billion and the Asian Development Bank 16.83 billion in loans to Pakistan. China extended the maturities on $2 billion in loans during 2025.

Loan terms and wider debt trends

Official creditor loans averaged 16-year maturities, a four-year grace period and 3.6% interest. Private credit averaged 8.6% interest, a three-year repayment period and a one-year grace period. The International Monetary Fund disbursed 2.3 billion under the Extended Fund Facility and Resilience and Sustainability Facility. Across low- and middle-income countries, external debt rose 5.5% to a record 9.4 trillion in 2025, driven by renewed bond issuance, a weaker US dollar and investor appetite for lending.

Important Facts for Exams

• Residence test: External debt is determined by the debtor’s and creditor’s economic residence, not nationality; residence typically reflects where they are ordinarily located.
• Eligible liabilities: External debt covers actual current, non-contingent liabilities requiring future principal or interest payments.
• Standard breakdown: A general classification separates external debt into public and publicly guaranteed debt, private non-guaranteed credits, central bank deposits and IMF loans.