Pakistan's foreign loans rose 97% over the past decade, from $68.7 billion in 2015 to $135.1 billion in 2025, according to the World Bank's International Debt Report 2026. The increase of nearly $66.4 billion shows how much the country has relied on borrowing from abroad to cover its financing needs. The figures cover external debt, meaning money owed to lenders outside Pakistan.
Who Pakistan owes
Public and publicly guaranteed debt, which is borrowing by the state or backed by a state guarantee, made up the bulk of the total at $107.1 billion. Private non-guaranteed debt, owed by private borrowers without a government guarantee, stood at $17.6 billion, while short-term debt was $10.5 billion.
Within the public portion, multilateral lenders, which are institutions owned by several countries, held $56.8 billion. Bilateral creditors, meaning individual governments, held $42.4 billion and private creditors $7.8 billion. China remained the largest single creditor with $22.4 billion outstanding, followed by the World Bank at $19.2 billion and the Asian Development Bank at $16.8 billion.
The report also compares terms. Official creditors offered loans with an average maturity of 16 years, a four-year grace period (the time before principal repayments begin) and an average interest rate of 3.6%. Private credit was costlier, with an average interest rate of 8.6%, a three-year repayment window and only a one-year grace period. The Middle East, North Africa, Afghanistan and Pakistan region saw its external debt rise from 26.7% to 29.4% of gross national income in 2025, the steepest one-year climb of any region.
Rollovers and repayments due
Separately from the rise in Pakistan's foreign loans, sources in the Ministry of Finance said the country has secured assurances from China and Kuwait to roll over loans worth $4.3 billion for the current fiscal year. China is expected to roll over $4 billion and Kuwait $300 million. A rollover means a lender agrees to extend the repayment date rather than take the money back now.
The $4 billion Chinese loan is expected to be rolled over in March 2027. The China and Kuwait loans, along with Saudi Arabia's financing, are expected to be extended for about one year. Pakistan is scheduled to secure total rollovers of $7.3 billion from Saudi Arabia, China and Kuwait, which leaves about $3 billion from Saudi Arabia by subtraction. These rollovers fall within external debt repayments of roughly $21 billion this fiscal year, a 12-month budget period.
Finance Minister Muhammad Aurangzeb has said Pakistan is also expected to receive $1.21 billion from the International Monetary Fund (IMF), a global lender, in December. Together with the rollovers, that money is expected to help Pakistan meet its external financing needs and protect its foreign exchange reserves. Both steps are still expected rather than completed.
Timeline: what has happened so far
- 2015: Pakistan's foreign loans stood at $68.7 billion.
- 2025: Foreign loans reached $135.1 billion, and China stretched the maturities on $2 billion of loans to Pakistan.
- 5 November 2026: Sources reported assurances from China and Kuwait on $4.3 billion in loan rollovers.
- 6 November 2026: Figures from the World Bank's International Debt Report 2026 on foreign loans were reported.
- December 2026: An IMF disbursement of $1.21 billion is expected, the finance minister has said.
- March 2027: The $4 billion Chinese loan is expected to be rolled over.
Aasan alfaaz mein
Pakistan ka foreign loan 10 saal mein 97 feesad barh kar 2025 mein 135.1 arab dollar ho gaya hai. Zyada qarz ka matlab hai ke tax ka bara hissa sood aur qisht mein jayega, jo school, hospital aur bijli ke kaamon se paisa le sakta hai. China aur Kuwait ne 4.3 arab dollar ke qarz ki rollover ka bharosa diya hai, yani wapsi ka waqt agle saal tak aage barhaya ja sakta hai. Aam logon ke liye iska asar mehngai, tax aur economy ki raftar par ho sakta hai.
