Pakistan to Repay $23 Billion Foreign Debt This Fiscal Year

Pakistan is scheduled to repay over $23 billion in external debt during FY2025-26, including $11 billion to multilateral, bilateral, commercial lenders, and bondholders, and $12 billion in foreign deposits.

Of the $12 billion in deposits, $5 billion is from Saudi Arabia, $2 billion from the UAE, $1 billion from Qatar, and $700 million from Kuwait.

$4 billion in Chinese SAFE deposits are held on the books of the Ministry of Finance.

Key repayments this fiscal year include $500 million in September 2025 and $1 billion in April 2026 for maturing Eurobonds, with total bond servicing (including interest) reaching $1.7 billion. Commercial loan repayments total $2.3 billion, multilateral debt repayments $2.8 billion, and bilateral loans $1.8 billion.

$15 billion falls under public sector obligations and $9 billion under the State Bank of Pakistan, including IMF-related repayments and deposits without rupee cover for budget support.

Any failure to secure rollovers could increase repayment pressure. Pakistan’s debt-to-GDP ratio, which previously improved due to high inflation inflating nominal GDP, may now deteriorate amid slowing inflation and lower nominal growth.