Pakistan’s External Debt Hits $138 Billion: Finance Ministry Details Average 4% Interest Rate. -

The Ministry of Finance has released a comprehensive report detailing Pakistan’s external financial standing, revealing that the nation’s total external liabilities have reached $138 billion. This total encompasses debt from the public and private sectors, as well as Public Sector Enterprises (PSEs).

Debt Breakdown and Servicing

The report provides a nuanced look at how this debt is structured and the costs associated with maintaining it:

External Public Debt: Of the total liabilities, the External Public Debt specifically stands at $92 billion.
Interest Rates: A significant portion of the debt is long-term and concessional, carrying an average interest rate of 4%.
Loan Composition: Both commercial loans and Eurobonds represent roughly 7% each of the total debt portfolio.
Escalating Costs: Interest payments have seen a sharp rise due to global rate hikes, jumping from $1.99 billion in FY2022 to $3.59 billion in FY2025.

Economic Strategy

The Ministry underscored that the current strategy focuses on IMF-supported concessional financing to stabilize the economy. By clarifying these figures, the government aims to provide accurate context to counter narratives regarding high-cost borrowing and demonstrate its commitment to transparent debt management.

Disclaimer: This post is for informational purposes and is based on official reports provided by the Finance Ministry. Debt figures and interest rates are subject to change based on global market conditions and future borrowing agreements. Please note that the background image is AI-generated and intended for illustrative reference only.