ISLAMABAD – Web Desk: The government secured $10.6 billion in new loans during the last fiscal year while repaying $13.3 billion in principal and interest, according to the annual report released by the Ministry of Economic Affairs.
The report states that federal authorities borrowed $8.6 billion, while provincial governments obtained $1.9 billion in external financing. Debt servicing payments included $9.7 billion in principal repayments and $3.5 billion in interest obligations.
Pakistan’s total external debt reached $91.7 billion by the end of the fiscal year, reflecting ongoing challenges in managing public finances and external liabilities.
The government continues to engage with international financial institutions as it seeks economic stabilization and structural reforms. The International Monetary Fund has acknowledged signs of economic recovery ahead of forthcoming review discussions.
Multilateral development partners provided $5.06 billion in loans. The Asian Development Bank contributed $2.2 billion, while the World Bank extended $1.9 billion. The Asian Infrastructure Investment Bank provided an additional $89 million.
Of the total borrowing, $1.3 billion was allocated to power and energy projects. Development expenditures also included $68 million for climate change mitigation initiatives, $28 million for urban and rural infrastructure, $18.5 million for health programs, and $17.1 million for information technology projects.
Officials say such investments aim to strengthen economic resilience while addressing long-term development priorities.
