Pakistan’s total debt and liabilities have increased to $138 billion, according to an official document. Rising interest payments and new borrowings are driving the surge. The increase affects the country’s fiscal stability and economic planning.
The Economic Affairs Division reported that interest payments on external loans rose by 84 percent over three years. Total interest now amounts to $3.59 billion, up from $1.67 billion compared to 2022. The rise covers loans from the IMF, World Bank, ADB, commercial banks, and deposits from Saudi Arabia and China.
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Including principal and interest, Pakistan spent $13.32 billion annually on debt repayments. Net external debt increased by $1.71 billion last year, while the country repaid $9.73 billion in loans over three years. Analysts note the growing fiscal pressure on government resources.
During the last fiscal year, Pakistan signed $10.64 billion in new loans. The fresh borrowings are intended to support development projects and manage liquidity requirements. Officials warn that rising debt servicing limits budget flexibility for essential spending.
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Economists highlight that sustained borrowing and higher interest obligations could affect macroeconomic stability. Policy adjustments may be needed to contain debt growth. The government aims to balance financing needs with long-term fiscal sustainability.