Pakistan's external debt servicing surges to $10bn in Q4FY26

Mettis Global reported that Pakistan's external debt servicing reached $10.14 billion in the fourth quarter of fiscal 2026, a sharp increase from $3.86 billion in the previous quarter. The State Bank of Pakistan's data put the quarter-on-quarter rise at roughly 2.63 times, with principal repayments accounting for most of the jump.

Principal repayments climbed to $8.81 billion from $2.70 billion, while interest payments edged up to $1.33 billion. Government debt repayments almost doubled, reaching $5.61 billion, and foreign exchange liabilities servicing jumped to $3.56 billion from $146 million, largely because principal of $3.45 billion was paid after a nil figure in the prior quarter.

Repayments to the IMF eased to $202 million from $288 million, while public sector enterprises' debt servicing fell to $90 million. Private sector external repayments climbed to $662 million from $362 million, with non-guaranteed principal rising to $469 million. For the full fiscal year, total servicing came to $21.59 billion, of which public debt accounted for $18.90 billion.