Islamabad: The Ministry of Finance issued a statement clarifying Pakistan's external debt profile, emphasizing that the country's debt remains largely concessional and long-term.

Total external debt and liabilities stand at $138 billion, including public and publicly guaranteed debt, Public Sector Enterprise borrowing, bank borrowings, private-sector external debt, and intercompany liabilities. External Public (Government) Debt accounts for $92 billion, with 75% being concessional and long-term from multilateral and bilateral partners, 7% commercial loans, and 7% Eurobonds. The average cost of External Public Debt is around 4%.

Interest payments increased from $1.99 billion in FY2022 to $3.59 billion in FY2025 (an 80.4% increase). Key debt servicing payments included IMF ($1.50B), Naya Pakistan Certificates ($1.56B), Asian Development Bank ($1.54B), World Bank ($1.25B), and commercial loans ($3B). The increase reflects global interest rate dynamics, including U.S. Federal Reserve rate hikes.

The Government reiterated its commitment to prudent debt management, transparency, and macroeconomic stability, urging stakeholders to consider the full context of Pakistan's debt structure.