Pakistan’s total external debt has nearly doubled over the past decade. According to the World Bank’s International Debt Report 2026, the country's foreign debt rose from $68.673 billion in 2015 to $135.107 billion in 2025.

The report details that out of the total external debt, public and publicly guaranteed debt stands at $107.076 billion.

Meanwhile, private sector nonguaranteed debt is $17.58 billion, and short-term debt accounts for $10.45 billion.

Breakdown of Public and Guaranteed Debt

• Multilateral creditors: $56.83 billion
• Bilateral creditors: $42.43 billion
• Private creditors: $7.8 billion

China remains Pakistan's largest single bilateral creditor, holding $22.4 billion of the debt. It is followed by the World Bank at $19.2 billion and the Asian Development Bank (ADB) at $16.83 billion.

Loan Terms and Interest Rates
The report notes that loans from official creditors carry an average maturity of 16 years, which includes a four-year grace period, with an average interest rate of 3.6%. In contrast, private loans carry a much higher average interest rate of 8.6%, with an average repayment term of three years and a one-year grace period.

Regional Context and Debt-to-GNI Ratio
While the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region experienced slight improvements in its debt-service-to-revenue ratios, the region’s ratio of external debt to Gross National Income (GNI) climbed from 26.7% to 29.4% in 2025.

This marked the highest annual increase of any region globally, highlighting a continuing trend of accumulating debt despite improvements in certain repayment indicators.

Recent Financial Relief and IMF Support
In 2025, China rolled over $2 billion of Pakistan's maturing debt. During the same year, the International Monetary Fund (IMF) disbursed $2.3 billion in new funds to Pakistan under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) to help secure the country's long-term economic stability.