Financial challenges facing Pakistan continue to escalate significantly over time. Data from the World Bank international debt report indicates that the total external debt of the country nearly doubled during the decade ending in 2025, reaching 135.1 billion US dollars.
Breakdown of Borrowings and Liabilities
Records show that external liabilities stood at 68.673 billion dollars back in 2015 before climbing to 135.107 billion dollars by 2025. This grand total encompasses various forms of obligations. Specifically, public and publicly guaranteed debt accounts for 107.076 billion dollars, while private nonguaranteed debt stands at 17.58 billion dollars alongside 10.45 billion dollars in short-term debt.
Major Creditors and Bilateral Lenders
Within the government and guaranteed segment, multi-lateral creditors hold 56.83 billion dollars, bilateral creditors account for 42.43 billion dollars, and private creditors hold 7.8 billion dollars. China remains the single largest bilateral lender to the nation by a considerable margin.
Exposure to International Financial Institutions
Total outstanding obligations owed to China alone amount to 22.4 billion US dollars. Following this, liabilities owed to the World Bank stand at 19.2 billion dollars while the Asian Development Bank holds claims totaling 16.83 billion dollars. Amid these fiscal pressures, adjustments have been made to repayment schedules. China extended the repayment timeline for a two billion dollar loan during 2025. Simultaneously, the International Monetary Fund provided 2.3 billion dollars in new financial assistance through an extended fund facility and other arrangements to support long-term economic stability.
Per Capita Financial Burden on Citizens
With the population hovering around 240 million people, the macro-level debt translates directly to the individual level. The per capita debt burden computes to roughly 560 dollars per person, which translates in local currency to approximately 1.55 lakh rupees. On a broader global scale, external debt among low and middle-income nations grew rapidly through 2025, marking the largest increase observed across a four-year window within developing economies.
