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Govt pays $3.23bn in interest on foreign debt in FY26

https://www.dawn.com/news/2043898

Govt pays $3.23bn in interest on foreign debt in FY26

In the fiscal year 2025-26, the Pakistani government disbursed a total of $16.16 billion in external loans, falling short of its $19.923 billion target by approximately 19 percent. The Ministry of Economic Affairs reported that the country's external public debt stood at $98.075 billion as of June 30, 2026, an increase of about $6.28 billion or 6.84 percent compared to the end of fiscal year 2025.

The government paid approximately $14.44 billion in external loans, comprising $11.198 billion in principal repayments and $3.238 billion in interest payments during the year. The remaining $3.238 billion was paid as interest on the debt.

Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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