Pakistan repaid USD 13.71B foreign debt in FY25

Pakistan’s external debt servicing — the principal and interest paid on loans — increased by 6.6% in FY25, as compared to the previous fiscal year, according to the State Bank of Pakistan (SBP) data.

The total debt servicing in FY25 stood at USD 18.05 billion, up by USD 1.1 billion from USD 16.93 billion in FY24.

The government repaid USD 13.71 billion in principal and interest on public debt in FY25, as compared to USD 13.5 billion in FY24. The amount included USD 11.21 billion as government debt, USD 2.1 billion was repaid to the IMF, and USD 0.39 billion as foreign exchange liabilities in FY25.

According to the SBP data, the principal and interest repaid by debt owed by public sector enterprises fell from USD 0.46 billion in FY24 to USD 0.42 billion in FY25. Of this amount, USD 0.38 billion was guaranteed debt, while USD 0.03 billion was non-guaranteed debt.

The debt servicing of borrowing from banks increased by over 300% from USD 0.35 billion in FY24 to USD 1.49 billion in FY25. Meanwhile, the servicing of the private sector’s loan marginally fell from USD 2.62 billion to USD 2.42 billion.

Pakistan’s government debt jumped by 13% in the FY25, which ended on June 30, reaching PKR 77.89 trillion, up from PKR 68.91 trillion a year earlier, according to data released by the SBP.

The increase was driven largely by a sharp rise in domestic borrowing, which surged 15.5% to PKR 54.47 trillion. Meanwhile, external debt rose 7.6% to PKR 23.42 trillion, the central bank reported.

The country’s total external debt obligations for FY26 are expected to be around USD 26.1 billion, the SBP governor said during an analyst briefing after the monetary policy announcement on Monday.

The debt obligations comprise USD 22 billion in principal repayments and USD 4.1 billion in interest payments. So far, USD 3.5 billion of these obligations have been managed, with USD 1.5 billion already repaid and USD 2 billion rolled over, the governor said.