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Pakistan's External Debt Nearly Doubles to $135 Billion in 10 Years, China Biggest Lender
Sentiment: NeutralHigh Priority
What Happened?
Pakistan's external debt reached $135.1 billion in 2025, nearly doubling from $68.7 billion in 2015. China is the largest creditor, holding $22.4 billion.
Key points
- Pakistan's external debt rose from $68.7 billion in 2015 to $135.1 billion in 2025.
- Public and publicly guaranteed borrowing accounted for $107.1 billion of the total debt.
- China is the largest individual creditor with $22.4 billion owed.
- The average interest rate on loans from official creditors is 3.6%, while private borrowing averages 8.6%.
- Pakistan received $2.3 billion from the IMF in 2025 to support economic stability.
- The external debt-to-GNI ratio increased from 26.7% to 29.4% in 2025.
Key insights
- The increase in debt reflects broader trends in borrowing among developing economies.
- China's significant lending may influence Pakistan's economic policies.
- Higher borrowing costs could strain Pakistan's financial resources.
Why it matters
The rising debt could impact Pakistan's economic stability and borrowing costs.
Entities
Pakistan· CountryChina· CountryWorld Bank· OrganizationInternational Monetary Fund· OrganizationAsian Development Bank· Organization
Source
Times of India
