The Government of Pakistan secured $10.6 billion in new external loans during the last fiscal year while repaying $13.3 billion in principal and interest, according to an annual report issued by the Ministry of Economic Affairs.
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The report stated that the federal government accounted for $8.6 billion of the total borrowing, while provincial governments obtained $1.9 billion in loans during the same period.
Debt servicing payments included $9.7 billion toward principal repayments and $3.5 billion in interest obligations. Following these transactions, Pakistan’s total foreign debt stood at $91.7 billion at the end of the fiscal year.
Multilateral development partners remained the primary source of financing, providing $5.06 billion collectively. The Asian Development Bank contributed the largest share at $2.2 billion, followed by the World Bank, which extended $1.9 billion. The Asian Infrastructure Investment Bank provided an additional $89 million.
According to the report, around $1.3 billion of the borrowed funds were allocated to power and energy sector projects aimed at addressing infrastructure and supply challenges.
The document also highlighted development-related expenditures, including $68 million for climate change mitigation projects, $28 million for urban and rural development initiatives, $18.5 million for healthcare programmes, and $17.1 million invested in information technology resources.
Officials said the borrowing was primarily directed toward development financing and economic stabilisation efforts amid ongoing fiscal and external sector pressures.
