{"id":60110,"date":"2026-02-22T14:46:54","date_gmt":"2026-02-22T14:46:54","guid":{"rendered":"https:\/\/pakistanintheworld.pk\/live\/?p=60110"},"modified":"2026-02-22T14:46:54","modified_gmt":"2026-02-22T14:46:54","slug":"pakistans-external-debt-profile-remains-predominantly-concessional-and-long-term","status":"publish","type":"post","link":"https:\/\/pakistanintheworld.pk\/live\/pakistans-external-debt-profile-remains-predominantly-concessional-and-long-term\/","title":{"rendered":"Pakistan\u2019s External Debt Profile Remains Predominantly Concessional and Long-Term"},"content":{"rendered":"

\"\"ISLAMABAD : The Ministry of Finance wishes to clarify certain assertions made in a recent press commentary regarding the country\u2019s external debt position and associated interest payments. The figures presented in the commentary require contextual explanation to ensure an accurate and comprehensive understanding of Pakistan\u2019s external debt profile.<\/p>\n

Pakistan\u2019s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of Public Sector Enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors. It is therefore important to distinguish this aggregate figure from External Public (Government) Debt, which amounts to approximately $92 billion.<\/p>\n

Of the total External Public Debt, nearly 75 percent comprises concessional and long-term financing obtained from multilateral institutions (excluding the IMF) and bilateral development partners. Only about 7 percent of this debt consists of commercial loans, while another 7 percent relates to long-term Eurobonds. In light of this composition, the claim that Pakistan is paying interest on external loans \u201cup to 8 percent\u201d is misleading. The overall average cost of External Public Debt is approximately 4 percent, reflecting the predominantly concessional nature of the borrowing portfolio.<\/p>\n

With respect to interest payments, public external debt interest outflows increased from $1.99 billion in FY2022 to $3.59 billion in FY2025, representing an increase of 80.4 percent, not 84 percent as reported. In absolute terms, interest payments rose by $1.60 billion over this period, not $1.67 billion.<\/p>\n

According to the State Bank of Pakistan\u2019s records, total debt servicing payments to specific creditors during the period under reference were as follows: the International Monetary Fund received $1.50 billion, of which $580 million constituted interest; Naya Pakistan Certificates payments totaled $1.56 billion, including $94 million in interest; the Asian Development Bank received $1.54 billion, including $615 million in interest; the World Bank received $1.25 billion, including $419 million in interest; and external commercial loans amounted to nearly $3 billion, of which $327 million represented interest payments.<\/p>\n

Media Reports on Economic Emergency in Pakistan – Business Activities, Travels Abroad Restrictions Rebutted by Finance Ministry<\/a><\/p><\/blockquote>\n