Pakistan's external debt hits $135.1 billion, nearly double 2015, World Bank report says

Pakistan's external debt reached $135.1 billion at the end of 2025, almost double the $68.7 billion of 2015, according to the World Bank's International Debt Report 2026, Business Recorder reported on Friday. The stock rose 4% in 2025 alone. At today's dollar rate of about Rs 276.67, $135.1 billion is roughly Rs 37.4 trillion.

Where Pakistan's $135.1 billion comes from

Inside the government's share, multilateral lenders (the World Bank, ADB and others) hold $56.83 billion, bilateral lenders (other governments) $42.44 billion, and private creditors such as bondholders and commercial banks $7.81 billion.

The biggest lenders

1. China: $22.42 billion, still Pakistan's largest single government lender.
2. World Bank (including its IDA arm): $19.21 billion.
3. Asian Development Bank: $16.83 billion.
4. Other bilateral lenders combined: $11.85 billion.

The report adds that the IMF disbursed $2.3 billion to Pakistan in 2025 under the Extended Fund Facility and the Resilience and Sustainability Facility, and that China extended the maturity of about $2 billion that was due that year.

Commercial money costs more than twice as much

The sharpest line in the report is the price gap:

• Official lenders (governments and multilaterals): average interest 3.6%, maturity 16 years, with four years' grace before repayments start.
• Private lenders: average interest 8.6%, maturity three years, with one year's grace.

Every dollar borrowed commercially has to be repaid or rolled over far sooner, and at well over twice the rate. That is why the finance ministry has been trying to swap expensive short-term loans for longer, cheaper ones (see Aurangzeb's plan to stretch out short-term debt).

What the ratios say

• External debt was 34% of gross national income in 2025.
• Debt service took 33% of export earnings: a third of every dollar Pakistan earned abroad went on repayments and interest.
• Total external debt was 324% of exports, more than three years of export income.

What it means for you

Debt repayments compete with imports for the same dollars, so a heavy repayment calendar keeps pressure on the rupee and on the State Bank's reserves, which rose by $39 million to $21.56 billion in the week to 30 October. A weaker rupee shows up in the price of petrol, phones and anything imported. Follow the dollar to rupee rate and petrol price pages for the day-to-day effect, and use our currency converter to turn any dollar figure into rupees.