Pakistan’s external debt and liabilities reached $92.2 billion as of August 31, 2025, according to the Debt Management Office (DMO) of the Ministry of Finance.
Citing official data presented before the National Assembly’s Standing Committee on Economic Affairs, Business Recorder reported that medium- and long-term loans account for $89.1 billion of the total external debt. Of this, $42.58 billion has been borrowed from multilateral lenders such as the World Bank and the Asian Development Bank (ADB), while $21.82 billion comprises bilateral loans directly obtained from other countries.
The committee was also briefed on Pakistan’s engagements with the International Monetary Fund (IMF) and its various loan programmes.
Lawmakers directed the Finance Ministry and the State Bank of Pakistan (SBP) to provide comprehensive details of all IMF loans obtained since 2008, including their utilisation, repayment, and interest payments, to ensure greater transparency.
According to officials, Pakistan has availed several IMF programmes primarily to bridge fiscal deficits and stabilise foreign exchange reserves. However, economists believe that while such loans provide temporary relief, they are insufficient to achieve sustainable economic independence.
Committee Chairman Senator Saifullah Abro expressed concern over the government’s growing reliance on foreign borrowing, warning that using debt-financed projects as collateral for more loans is a “dangerous trend.”
He stressed that “the purpose of borrowing should be self-reliance, not perpetuating a cycle of dependency.”
It was also revealed that under the 2022–23 federal budget, around Rs90 billion allocated under “special funds” remain unaccounted for, with no clear disclosure of their sources or utilisation. The Senate committee has demanded a full explanation on the matter.
Experts have urged the government to ensure complete transparency in loan management, utilisation, and debt servicing to restore public trust and demonstrate Pakistan’s financial credibility to international institutions.
