Pakistan’s external debt servicing as a share of total exports fell to 34% in FY25, down from a peak of 51% in FY23.

The ratio, which measures the portion of export earnings used to meet debt obligations, highlights the country’s external sector vulnerability in case of any decline in exports.

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The latest figure also reflects a modest improvement from FY24, when debt servicing consumed 35% of export proceeds, according to a report by brokerage house Topline Securities.

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