Pakistan on track for debt repayment
May 2025
Reading Time: 3 minutes
State Bank of Pakistan (SBP) reported that Pakistan is on track to meet its external debt* servicing requirements for the fiscal year 2024-25 (FY25). Pakistan had total external debt servicing requirements of about $26.1 billion at the start of FY25 as per SBP Governor, which was considered a difficult task by analysts.
However, as the 3rd quarter of FY25 closes, the government appears to be on track to meet this target. The total amount paid by Pakistan for external debt servicing is given below:
| FY25 Quarter | **Total External Debt Paid | Principal Paid | Interest Paid |
| 1st Quarter | $3.477 billion | $2.134 billion | $1.343 billion |
| 2nd Quarter | $4.176 billion | $2.786 billion | $1.39 billion |
| 3rd Quarter | $3.813 billion | $2.55 billion | $1.263 billion |
| Total | $11.466 billion | $7.47 billion | $3.996 billion |
*External debt is debt owed to external partners i.e. foreign countries and International Financial Institutions (IFI).
**Total External Debt Paid = Principal + Interest
The SBP Governor recently revealed that around $12.3 billion of external debt will be rolled over. This leaves a manageable amount for government to service in the final quarter of FY25.
| Debt Rolled Over | $12.3 billion |
| Debt Paid Off in 1st three Quarters | $11.466 billion |
| Expected Debt Repayment for 4th Quarter | $2.334 billion |
Source:
https://www.dawn.com/news/1910679/govt-repays-38-billion-in-third-quarter
