According to sources, rising risks of a decline in the US dollar’s value against other currencies are causing an increase in the payable amount of Pakistan’s external debt. Sources indicate that out of Pakistan’s total external debt of $92 billion, 56 percent consists of multilateral and bilateral loans.
In recent years, Pakistan’s external debt and obligations have hovered around $130 billion, mainly due to the US dollar remaining strong compared to other currencies such as the euro, Japanese yen, and British pound. However, in the past few days, the value of the US dollar has started to decline, raising concerns that if this trend continues, Pakistan’s debt-to-GDP ratio could rise sharply in the current quarter.
The Ministry of Finance, in a report on debt policy presented to Parliament, stated that by the end of June 2025, Pakistan’s external debt had reached $91.8 billion, reflecting a 6 percent annual increase, equivalent to a $5 billion rise. During the first quarter of the 2026 fiscal year, the external debt recorded a minor decrease of 0.4 percent ($0.35 billion).
