The Ministry of Finance has clarified that Pakistan is not paying up to eight per cent interest on external loans.
The ministry issued a clarification in response to “recent press commentary” on Pakistan’s external debt.
According to the ministry, public external debt interest outflows rose by 80.4 per cent between fiscal years 2022 and 2025, not 84 per cent.
“Pakistan’s total external debt and liabilities currently stand at $138 billion. This figure, however, encompasses a broad range of obligations, including public and publicly guaranteed debt, debt of public sector enterprises (both guaranteed and non-guaranteed), bank borrowings, private-sector external debt, and intercompany liabilities to direct investors,” the statement said.
It concluded that the government remained committed to prudent debt management, transparency, and the continued strengthening of Pakistan’s macroeconomic stability.
“Accurate representation of debt statistics is essential to informed public discourse, and stakeholders are encouraged to consider the full context of Pakistan’s external debt structure and evolving global financial conditions.”
