China tops Pakistan’s external debt list: World Bank

December 04, 2024 (MLN): China, Pakistan's CPEC partner, has emerged as the country’s largest creditor, accounting for a substantial 22%, or $28.79 billion, of Pakistan’s total external debt, according to the World Bank’s International Debt Report 2024.

The next in the line of bilateral partners was Saudi Arabia, with its lending standing at $9.16bn, accounting for 7% of the total external debt stocks as of 2023.

As per the report, Pakistan’s external debt reached $130.85bn in 2023. This accounts for 352% of the country’s total exports, while 39% of the country's Gross national income (GNI).

The report also indicates a significant strain on Pakistan’s fiscal position, with external debt servicing reaching 43% of exports. Meanwhile, interest charges during the review period stood at 5% of the GNI.

Multilateral partners held the largest share of lending, accounting for 46% of the external debt stock, while bilateral partners contributed 45%. The remaining portion consisted of bondholders and other commercial loans.

Among multilateral lenders, the World Bank accounted for 18%, while the Asian Development Bank provided 15% of Pakistan's total external debt of $130.85bn.

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