Islamabad: Pakistan’s external debt and liabilities surged to $92.2 billion as of August 31, 2025, according to the Debt Management Office (DMO) of the Ministry of Finance.
Breakdown of Pakistan’s Foreign Borrowing
Official data presented before the National Assembly’s Standing Committee on Economic Affairs revealed that medium- and long-term loans account for $89.1 billion of the total external debt.
Of this, $42.58 billion was borrowed from multilateral lenders, including the World Bank and the Asian Development Bank (ADB). Meanwhile, $21.82 billion comprises bilateral loans obtained directly from other countries.
Parliament Seeks IMF Loan Details
The committee also reviewed Pakistan’s engagements with the International Monetary Fund (IMF) and its ongoing loan programmes. Lawmakers directed the Finance Ministry and the State Bank of Pakistan (SBP) to provide complete details of all IMF loans obtained since 2008.
They demanded transparency regarding loan utilisation, repayment schedules, and interest payments to ensure public accountability.
Economists Warn of Unsustainable Borrowing
Officials said Pakistan has availed several IMF programmes to bridge fiscal deficits and stabilise foreign exchange reserves. However, economists caution that while these loans offer short-term relief, they do not ensure long-term economic independence.
Senate Committee Raises Red Flags
Committee Chairman Senator Saifullah Abro voiced concern over the government’s rising dependence on foreign borrowing. He warned that using debt-financed projects as collateral for new loans represents a “dangerous trend.”
He stressed that the true purpose of borrowing should be achieving self-reliance, not fueling dependency on external creditors.
Unaccounted Special Funds Disclosed
During the briefing, it was revealed that around Rs90 billion allocated under “special funds” in the 2022–23 federal budget remain unaccounted for. Officials provided no clear explanation regarding their sources or utilisation.
The Senate Committee has demanded a detailed clarification on the matter to ensure fiscal accountability.
Experts Call for Financial Transparency
Economic experts have urged the government to ensure complete transparency in loan management, utilisation, and debt servicing. They believe openness is essential to restore public trust and strengthen Pakistan’s financial credibility with international institutions.
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