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Pakistan’s Debt Surges by $138 Billion; Interest Payments Soar 84% in 3 Years
Pakistan’s outstanding debt tops $138B, with interest payments jumping 84% in 3 years. $13.3B spent annually on debt, including $3.6B in interest.
ND
by News Desk
2026-02-21
Pakistan’s Debt Surges by $138 Billion; Interest Payments Soar 84% in 3 Years

Pakistan’s outstanding debt and liabilities have surged by over $138 billion, according to a recent document from the Economic Affairs Division (EAD). The report highlights a sharp increase in interest payments on external debt, which have risen 84% over the past three years, reaching $3.59 billion.

Interest payments increased by $1.67 billion last year alone compared to 2022. The funds were paid to international lenders including the IMF, World Bank, Asian Development Bank (ADB), commercial banks, as well as safe deposits held by Saudi Arabia and China.

The document states that Pakistan spends $13.32 billion annually on debt repayments, which includes principal and interest payments. Despite repaying $9.73 billion over the last three years, Pakistan’s net external debt increased by $1.71 billion last year.

Meanwhile, Pakistan signed new loans worth $10.64 billion in the last fiscal year, highlighting continued reliance on external borrowing to meet financial obligations.

Economic analysts have warned that the rising debt burden and increasing interest obligations could put further strain on Pakistan’s fiscal stability, potentially impacting public spending, development projects, and economic growth.
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