Islamabad, July 18, 2025: Pakistan is set to repay over $23 billion in external debt servicing during the current financial year, according to official sources. This figure comprises $12 billion in deposits from friendly nations, with expectations of extending these funds, as per a recent report.
Despite this, the country still confronts approximately $11 billion in debt repayments owed to multilateral and bilateral partners, global bondholders, and commercial financiers. The risk of payment default could intensify if bilateral lenders decline the rollover appeals.
In addition to the $23 billion, Pakistan’s debt obligations also include a $500 million Eurobond repayment, scheduled for September 2025, with an 8.25% interest rate.
This is one of two key Eurobond repayment that is due in this fiscal cycle, the second bond maturity being in April 2026, valued at $1 billion and carrying a 6% interest rate.
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Major repayments expected in the ongoing fiscal year include:
- $1.7 billion in bond maturity and interest
- $2.3 billion in commercial borrowings
- $2.8 billion in payments to international institutions like the World Bank, ADB, and Islamic Development Bank
- $1.8 billion in bilateral borrowings
- $4 billion in SAFE deposits from China
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Pakistan’s total public external debt for FY2025-26 is estimated at nearly $15 billion. This comprises $4 billion from China’s SAFE reserves and $9 billion associated with the State Bank of Pakistan’s loans, which also involve IMF credit and other external deposits that do not contribute directly to the fiscal budget.
