Pakistan External Debt Reaches $135.1 Billion as China Remains Largest Creditor, World Bank Reports
Pakistan’s external debt nearly doubled between 2015 and 2025, reaching $135.1 billion, with China as its largest individual creditor, according to the World Bank’s International Debt Report 2026.
IMF Warns Short-Term Debt May Raise Government Borrowing Costs
The International Monetary Fund warns that heavy reliance on short-term debt could expose governments to faster interest rate increases, higher debt-servicing costs and greater fiscal pressure during inflation shocks.
Fitch Assigns B Minus Rating To Pakistan’s Proposed Dollar Eurobond
Fitch Ratings has assigned a B minus rating to Pakistan’s proposed US dollar denominated bond, with an RR4 Recovery Rating, while highlighting external liquidity, fiscal consolidation and governance risks.
Pakistan Retires Record Rs1.2 Trillion Debt Early as Government Steps Up Liability Management
Pakistan’s Ministry of Finance has repaid Rs1.2 trillion to the State Bank of Pakistan ahead of maturity, taking cumulative early domestic debt repayments above Rs5.92 trillion.
Pakistan’s Fiscal Stability Improves, But Growth Costs Raise Fresh Concerns
Pakistan’s fiscal indicators have improved with primary surpluses and lower debt servicing, but higher taxes, weak investment and restrained development spending raise concerns.
Pakistan Total Debt and Liabilities Rise to Rs99.59 Trillion in FY26
Pakistan’s total debt and liabilities increased 5.51% year on year to Rs99.59 trillion in FY26, while debt servicing declined 9.08% to Rs11.97 trillion, according to State Bank of Pakistan data.
Pakistan Seeks $1.3 Billion China Refinancing to Support Foreign Exchange Reserves
Pakistan has reportedly requested China to refinance a $1.3 billion commercial loan, with the expected inflow aimed at supporting foreign exchange reserves as the country manages external debt repayments and financing requirements.
SBP Governor Forecasts $5 Billion Drop in Pakistan’s FY27 Debt Servicing Bill
State Bank of Pakistan Governor Jameel Ahmad announces Pakistan’s FY27 external debt servicing will fall to $21.5 billion, aided by a $6 billion rollover.
Federal Government Cuts Interest Rate on Provincial and Public Sector Development Loans
Ministry of Finance reduces mark-up on development loans and advances to provinces and state-owned entities to 11.89 percent for fiscal year 2026.
Escalating Sovereign Debt: Government Bank Borrowing Surges to Rs 5.9 Trillion in FY26
State Bank of Pakistan data reveals net government borrowing reached Rs 5.9 trillion in FY26, escalating domestic debt servicing costs to Rs 8 trillion for FY27.