Pakistan's Debt Peaks Amid IMF Reforms: A Financial Balancing Act

Pakistan's external debt rose by 3.6% to PKR 22,959 billion in FY 2025-26, with total debt surpassing PKR 80 trillion. The State Bank of Pakistan reported domestic debt increasing by 11.7%. Despite external debt decrease, overall debt rose by 0.8%, averaging PKR 3,50,000 per citizen.

In a new report from the State Bank of Pakistan, the country's external debt has climbed by 3.6%, reaching PKR 22,959 billion for the fiscal year 2025-26.

The data reveals that Pakistan's total debt has eclipsed PKR 80 trillion, marking a 9.3% rise over the previous year. Domestic debt showed an 11.7% growth, while external debt saw a mild dip.

Amid these financial challenges, Pakistan repaid a PKR 3.45 billion deposit to the UAE, though foreign reserves were bolstered by a USD 3 billion deposit from Saudi Arabia, indicating ongoing stabilization efforts assisted by IMF-supported reforms.