Pakistan’s payments on interest for foreign loans have increased a lot in the past three years. The amount was increased by 84% of about $3.59 billion. This shows that foreign loans have become very expensive for Pakistan.
Why Interest Costs Are Higher
Officials say the main reasons are:
- More borrowing from commercial lenders, which charge more interest.
- World interest rates increased, making loans cost more.
Total Foreign Debt Over $138 Billion
Pakistan’s total foreign debt and liabilities passed over $138 billions by December 2025.
How Much Was Paid in 2025
In the year 2025, Pakistan have paid a total of $13.32 billion to cover foreign loan costs. This includes:
- $9.73 billion for paying back the loan amount (principal)
- $3.59 billion for interest payments
These large payments are making it hard for the government to manage its money.
Payments to Major Lenders
Pakistan made large payments to major foreign lenders:
- Around $2.10 billion to the International Monetary Fund
- Around $1.54 billion to the Asian Development Bank
- Around $1.25 billion to the World Bank
- Payments were also made to China and Saudi Arabia, including interest.
Commercial Loans Were More Costly
Commercial loans were costly. Pakistan had paid about $3 billion on these loans, and $327 million of interest.
New Borrowing and Certificates
Payments under Naya Pakistan Certificates reached $1.56 billion, which included $188 million of interest.
Warning from Economists
Most of Pakistan’s foreign debt is owed to big lenders like the IMF, World Bank, and Asian Development Bank. Economists say that as debt costs rise, less money will be left for public services and other needs. This will make it harder for Pakistan to run its economy without more help from foreign countries.
