Pakistan's external debt rose $92.2bn in FY26, reveals Economic Survey

Pakistan’s government external debt rose to $92.2 billion by the end of March 2026, an increase of $364 million during the first nine months of FY26, as revealed by the Economic Survey released on Thursday.

The pace of accumulation slowed sharply compared to the same period last year, when external debt rose $883 million.

“Government external debt accounts for the majority, amounting to $82.26 billion, while outstanding debt from the International Monetary Fund (IMF) stands at $9.89 billion, i.e. 11% of the total external debt.

“The IMF debt further consists of the federal government debt, i.e. $3.62 billion, and the central bank debt, i.e. $6.27 billion,” read the report.

The central government’s external debt was mostly long-term in nature, with $68.41 billion long-term debt having a maturity of greater than one year, whereas $13.853 billion was short-term debt.

“This is in line with the government’s external debt strategy that prioritises long-term financing, which typically carries lower repayment pressures,” read the report.

Meanwhile, multilateral loans from the World Bank, ADB and other development partners formed the largest chunk at $42.48 billion, or 46% of total external debt.

“These concessional loans carry lower interest rates and longer maturities, helping ease repayment pressure,” read the report.

Moreover, the Paris Club debt rose to $5.497 billion, representing approximately 6% of Pakistan’s total external public debt. “These loans are also concessional, offering longer repayment periods and lower interest rates,” it added.

Bilateral loans from non-Paris Club countries amount to $19.025 billion, making up to 21% of total external debt.

Eurobonds and international sukuk totaled $6.3 billion, about 7% of external debt. Loans from foreign commercial banks amounted to $6.32 billion, another 7%, with 1-3 year tenors and market-based rates. Naya Pakistan Certificates, Pakistan Banao Certificates and non-resident holdings of govt securities made up roughly 1.5% of external debt.

 The external debt numbers come a day before the federal budget, as Pakistan continues talks with the IMF on FY27 budget targets and the next phase of its programme.

The government said that efforts to reduce reliance on expensive short-term borrowing and shift toward longer-tenor instruments are helping improve the debt maturity profile, contain refinancing risks, and lower debt servicing pressures.

“Supported by stronger revenue mobilisation, expenditure rationalisation, moderating inflation, and growth-oriented reforms, Pakistan’s public debt burden is expected to gradually decline over the medium to long term, reinforcing macroeconomic stability and fiscal resilience,” it said.