Pakistan’s external debt has climbed to $92.2 billion by the end of March 2026, according to the latest Economic Survey, highlighting continued pressure on the country’s external financing needs despite a slower pace of accumulation this year.
The latest figures show that Pakistan’s external debt increased by $364 million during the first nine months of the current fiscal year. Officials note that while the debt stock is still rising, the growth rate has eased compared to the sharp increases seen in previous years.
Debt composition shows reliance on multilateral lenders
The Economic Survey reveals that the federal government’s outstanding external debt stood at $82.26 billion, forming the bulk of the total liabilities. A significant portion of this borrowing comes from multilateral and bilateral partners.
Loans from global financial institutions, including the International Monetary Fund (IMF), World Bank, and Asian Development Bank (ADB), total $42.48 billion. This accounts for around 46% of Pakistan’s external debt stock, showing continued dependence on concessional financing.
The IMF alone holds $9.89 billion in outstanding obligations, making up nearly 11% of the total external debt.
Bilateral debt also remains a key component. Debt owed to Paris Club creditors rose to $5.49 billion, while loans from non-Paris Club countries have crossed $19 billion, reflecting diversified borrowing sources.
Long-term borrowing increases as short-term liabilities ease
The report shows a gradual shift in Pakistan’s borrowing structure. Long-term external debt has increased to $68.41 billion, while short-term external liabilities stand at $13.85 billion.
Economic experts say this shift indicates an effort to reduce immediate repayment pressure by moving toward longer maturity loans. However, they also caution that rising long-term obligations still add to the country’s overall debt burden.
Eurobonds and international Sukuk bonds now stand at $6.3 billion. Borrowing from foreign commercial banks has reached $6.32 billion, adding to Pakistan’s exposure to global financial markets.
Government signals reform-driven debt management strategy
Officials highlighted in the Economic Survey that Pakistan is gradually moving away from expensive short-term borrowing. Instead, the government is focusing on longer-term financing arrangements supported by structural reforms.
The report also suggests that improved revenue collection and ongoing economic reforms may help stabilize the debt trajectory over the medium term. However, analysts stress that sustaining this improvement will depend on consistent fiscal discipline and stronger export performance.
Despite slower growth in external liabilities this year, Pakistan continues to face challenges in balancing external payments, especially amid global interest rate pressures and rising repayment obligations.
Financial observers say the country’s reliance on external financing for budget support and development projects remains a structural issue that needs long-term solutions.
Outlook remains cautious amid global uncertainties
While the pace of debt accumulation has slowed, the overall debt level remains high and sensitive to global financial conditions. Exchange rate fluctuations, global interest rates, and commodity prices continue to influence Pakistan’s repayment capacity.
Economists argue that maintaining macroeconomic stability will require sustained reforms in taxation, exports, and energy sector efficiency. Without these improvements, external borrowing pressures are likely to persist in the coming years.
For now, the latest data underscores a mixed picture: slower debt growth, but still rising overall exposure.
