Pakistan's external debt servicing reaches $3.55bn in Q1 FY26

November 14, 2025 (MLN): Pakistan settled $3.55 billion in external debt repayments during the first quarter of FY26, provisional data from the State Bank of Pakistan shows.

The debt servicing figure includes $2.35 billion in principal repayments and $1.19 billion in interest payments across various categories of external borrowings.

Public debt accounted for the largest share of debt servicing at $2.92 billion, with government debt alone comprising $2.46 billion of this amount. This included $1.80 billion in principal repayments and $661 million in interest payments on government borrowings.

Pakistan also made $330 million in repayments to the International Monetary Fund during the quarter, consisting of $212 million in principal and $118 million in interest, as the country continues to service its obligations under IMF financing arrangements.

Foreign exchange liabilities added another $132 million to the debt servicing burden, entirely in the form of interest payments.

The private sector serviced $407 million in external debt during the quarter, all of which was non-guaranteed debt. This included $237 million in principal repayments and $169 million in interest payments.

Public sector enterprises paid $195 million toward their external obligations, with the bulk being guaranteed debt servicing of $177 million. Bank borrowings accounted for $26 million in debt servicing, entirely comprising interest payments.

Pakistan's total external debt servicing for the complete fiscal year 2025 stood at $18.05 billion, comprising $12.71 billion in principal repayments and $5.34 billion in interest payments.

Public debt dominated the annual figures at $13.71 billion, with government debt accounting for $11.22 billion of total servicing.

IMF repayments for the full year reached $2.10 billion, reflecting Pakistan's substantial obligations under its IMF program during that period.

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