The burden of foreign debt continues to grow across South Asia, with a new 2026 report showing that India has the region’s largest external debt, while Pakistan ranks second. However, when measured on a per capita basis, smaller countries such as the Maldives, Bhutan and Sri Lanka carry the heaviest debt burden.
According to the report, India’s total external debt has reached around $765 billion, the highest in South Asia. Due to its large population, however, the country’s external debt per person stands at approximately $535.
Pakistan ranks second with a total external debt of $138 billion, while its per capita external debt is estimated at around $530.
Bangladesh has recorded a total external debt of $102 billion, with a per capita debt of approximately $590. Sri Lanka’s external debt stands at $57 billion, but its smaller population pushes its per capita debt burden to around $2,590.
The report states that Nepal’s total external debt is about $11 billion, with per capita debt of roughly $370. Although Bhutan’s total external debt is only $3.5 billion, each citizen carries an average debt of around $4,400.
The Maldives has the highest per capita external debt in South Asia. Its total external debt is estimated at $4 billion, but because of its small population, the average debt per person stands at approximately $7,500.
Afghanistan has the lowest external debt in the region, according to the report. Its total external debt is estimated at around $2.5 billion, with a per capita debt burden of just $60.
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