Pakistan\'s external debt servicing surges to $10bn in Q4FY26

Pakistan's external debt servicing surged to $10.14bn in the fourth quarter of fiscal year 2026, up sharply from $3.86bn in the preceding quarter, according to data released by the State Bank of Pakistan (SBP). The increase, of roughly 2.63x quarter-on-quarter, was driven primarily by a jump in principal repayments, which rose to $8.81bn in Q4 from $2.70bn in Q3. Interest payments also edged higher, climbing to $1.33bn from $1.15bn over the same period. Servicing of public debt, which includes government obligations, IMF repayments and foreign exchange liabilities, rose to $9.37bn in Q4 from $3.30bn in Q3. Within this, government debt repayments nearly doubled to $5.61bn in Q4 from $2.87bn in Q3, with principal payments rising to $4.75bn from $2.24bn and interest payments climbing to $864mn from $632mn.