Pakistan paid $3.238 billion in interest on its external public debt in the 2025-26 financial year, according to a Ministry of Economic Affairs report. Together with $11.198 billion in principal, the total debt service came to $14.436 billion. Over the same year, the external public debt rose to $98.075 billion. Here are the figures, where the money came from and what the reports do not explain.
The Key Numbers
| Item | FY26 (July 2025 to June 2026) |
|---|---|
| Interest paid | $3.238 billion |
| Principal repaid | $11.198 billion |
| Total debt service | $14.436 billion |
| External public debt, 30 June 2026 | $98.075 billion |
| External public debt, 30 June 2025 | $91.795 billion |
| Rise in debt | About $6.28 billion (6.84%) |
Dawn (12 November 2026) rounds the interest to $3.23 billion in its headline, and uses $3.238 billion in the text. The figures come from the Ministry of Economic Affairs’ annual report on Foreign Economic Assistance, according to Dawn, Minute Mirror and TechJuice. Dawn quotes the report as saying that “$14.436bn was paid during the year for external public debt servicing.”
Compared With Last Year
TechJuice says debt service was $13.32 billion in 2024-25, so this year’s payments are about $1.1 billion, or about 8%, higher. None of the reports give last year’s split between interest and principal, so I cannot say how interest alone changed.
My own arithmetic from the report’s numbers: interest was about 22% of the total debt service, and principal about 78%.
New Money Coming In
- Disbursements: $16.16 billion, about 81% of the $19.923 billion target. That is about 19% short.
- New commitments: $8.951 billion, of which $6.809 billion is for federal projects and programmes and $2.142 billion for provincial ones.
- Net transfers: $4.417 billion, according to Dawn and TechJuice.
Where the Money Came From
Dawn says about $9.375 billion of the disbursements was budget support or balance-of-payments financing. It lists:
- Naya Pakistan Certificates: $3.050 billion.
- Time deposits from friendly countries: $3 billion.
- Foreign commercial banks and bonds: 31% of that support.
- The IMF: 4%.
Project financing was $3.435 billion, with a focus on energy, environment and climate, water, transport and education. Programme financing was $1.329 billion, and commodity financing was $2.019 billion.
By Lender
- World Bank: $2.025 billion.
- Asian Development Bank: $1.772 billion.
- Islamic Development Bank: $1.087 billion.
- Saudi Arabia, the largest bilateral lender: $1.013 billion.
- China: $501 million.
Multilateral and bilateral development partners hold $59.931 billion of the debt stock, according to the report. The reports do not say who holds the rest.
Why the Debt Rose Despite Repayments
Debt service of $14.436 billion is less than disbursements of $16.16 billion. Simple subtraction gives about $1.7 billion, but the debt stock rose about $6.28 billion, and the report’s net transfers are $4.417 billion. None of the three reports explain the gaps. Dawn says the net transfers increased the external debt stock. The difference may come from exchange-rate or other adjustments, but this is my guess, not from the report.
What It Means
The reports give no comment from the government, the IMF or economists. As plain arithmetic, about $14.4 billion left the country for debt service in a year, and a large part of the new money was used for budget and balance-of-payments support. The sources do not say how this compares with foreign exchange reserves, exports or the budget.
Numbers That Do Not Add Up
- By my check, the figures do not fully match the totals. The project, programme and commodity disbursements add up to about $6.78 billion, not $16.16 billion. The commitment shares and breakdown also do not add up to $8.951 billion. The reports do not explain these gaps.
- By my check, the multilateral shares (40%, 35% and 22%) add up to 97%.
- Minute Mirror’s summary says Pakistan “repaid around $14.44 billion in foreign loans.” That is the total debt service, including interest, and principal alone was $11.198 billion.
- The debt stock appears as $98.075 billion in the text and as $98.07 or $98.08 billion in some summaries. This is rounding.
What I Could Not Confirm
- The original Ministry of Economic Affairs report. I could not open it, and the figures come from Dawn, Minute Mirror and TechJuice, which all appear to use the same report.
- How last year’s debt service split between interest and principal.
- The reasons for the gaps between debt service, disbursements and the rise in the debt.
- Who holds the part of the debt not covered by the $59.931 billion held by development partners.
- Whether the figures include or exclude short-term and IMF debt. The reports do not say.
This report covers external public debt only, not domestic debt. This is general information.
Frequently Asked Questions
How much interest did Pakistan pay on foreign debt?
$3.238 billion in the 2025-26 financial year, according to Dawn.
What was the total debt service?
$14.436 billion, made up of $11.198 billion in principal and $3.238 billion in interest.
How big is Pakistan’s external public debt?
$98.075 billion at 30 June 2026, up from $91.795 billion a year earlier.
How much new foreign money came in?
$16.16 billion in disbursements, about 81% of the target.
Who lent the most?
Among development banks, the World Bank ($2.025 billion). Among countries, Saudi Arabia ($1.013 billion).
Does this include domestic debt?
No. It covers external public debt only.
These are year-end figures for the financial year ended 30 June 2026.
