Pakistan's external debt nearly doubles to $135 bn in 10 years, China biggest lender
Times of India 1 hr ago·6 Nov 2026, 9:42 am
Pakistan’s external debt is set to reach about $135 billion by 2025, roughly double the $68.7 billion it carried in 2015. Most of the increase has come from public and publicly‑guaranteed borrowing, which now accounts for around $107 billion, and China has emerged as the single largest creditor.
For investors, the surge raises concerns about Pakistan’s ability to meet rising debt‑service obligations, especially as private borrowing tends to be costlier. Higher sovereign risk can pressure the rupee, push up yields on emerging‑market bonds and influence risk appetite across the region.
Going forward, markets will watch Pakistan’s negotiations with the IMF, any fiscal‑adjustment plans, and the terms of new Chinese loans. Changes in the country’s bond spreads or a shift in Chinese lending policy could provide early signals of how the debt trajectory will affect broader emerging‑market sentiment.
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