ISLAMABAD: Pakistan’s external debt nearly doubled over the past decade, reaching $135.1 billion in 2025, according to the World Bank’s International Debt Report 2026.
The report revealed that the country’s external debt increased from $68.67 billion in 2015 to $135.1 billion in 2025, highlighting growing dependence on foreign borrowing.
Public and publicly guaranteed debt accounted for $107.07 billion, while private non-guaranteed debt stood at $17.58 billion. Short-term external debt reached $10.45 billion.
China remained Pakistan’s largest individual creditor, with $22.4 billion outstanding. The World Bank ranked second with $19.2 billion, followed by the Asian Development Bank with $16.83 billion.
The report also showed that multilateral creditors held $56.83 billion of Pakistan’s public and publicly guaranteed debt, while bilateral creditors accounted for $42.43 billion.
Meanwhile, China extended the maturities of $2 billion in loans to Pakistan during 2025. The International Monetary Fund also disbursed $2.3 billion under its Extended Fund Facility and Resilience and Sustainability Facility programmes.
Globally, external debt among low- and middle-income countries increased to a record $9.4 trillion in 2025. Rising borrowing costs and debt repayments continue to create serious economic challenges for developing nations.
