Islamabad (The COW News Digital) Pakistan’s external debt has nearly doubled over the past decade, reaching approximately $135 billion in 2025, according to a latest report by the World Bank, highlighting the country’s growing financial obligations.
The report states that Pakistan’s external debt stood at $68.67 billion in 2015. Over the following ten years, the figure increased significantly to $135.107 billion in 2025, reflecting a substantial rise in the country’s reliance on external financing.
According to the World Bank, Pakistan’s public and publicly guaranteed external debt reached $107.07 billion. Meanwhile, the country’s private sector held an additional $17.58 billion in non-guaranteed external debt.
The report also highlighted the growing burden of short-term external liabilities. Pakistan’s short-term external debt amounted to $10.45 billion, indicating continued pressure on the country’s external financial position.
Pakistan also has significant outstanding obligations to multilateral lenders. The World Bank report stated that the country owes approximately $16.83 billion to the Asian Development Bank (ADB).
The figures underline the scale of Pakistan’s external borrowing and the challenges associated with managing debt repayments, foreign exchange requirements and economic stability.
The report further noted developments involving Pakistan’s major international financial partners during 2025.
China extended the maturity period of $2 billion in loans to Pakistan during the year, providing additional time for repayment. The extension was an important development amid Pakistan’s efforts to manage its external debt obligations.
The International Monetary Fund (IMF) also released fresh payments amounting to $2.3 billion to Pakistan in 2025 under its Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programmes.
The IMF financing was part of the broader financial support provided to Pakistan as the country continued efforts to address economic challenges and strengthen financial stability.
Pakistan has faced persistent difficulties in managing its external debt, including pressure on foreign exchange reserves, repayment obligations and the need for additional financing.
The increase in external debt over the past decade has raised concerns about the country’s long-term financial sustainability. Economists generally emphasise the importance of improving exports, increasing foreign investment and strengthening revenue collection to reduce dependence on external borrowing.
The World Bank’s figures also demonstrate the importance of carefully managing both public and private external liabilities, particularly as international financing conditions and repayment schedules can affect the country’s economic outlook.
While loan extensions and international financial assistance can provide temporary relief, Pakistan’s ability to maintain sustainable debt levels will depend on broader economic reforms and improved financial management.
The latest report provides a detailed picture of Pakistan’s external debt position and highlights the continuing importance of fiscal discipline, economic growth and effective debt management.
