Government Paid Rs32,239 Billion in Interest on Loans from 2021 to 2026
ISLAMABAD: The Ministry of Finance has revealed details of Pakistan’s debt and interest payments during a session of the Senate, highlighting the significant financial burden associated with the country’s borrowing.
According to the information presented by the Finance Ministry, Pakistan’s total debt stood at Rs81,374 billion as of December 2025. The figures were shared during Senate proceedings chaired by Presiding Officer Manzoor Kakar as lawmakers discussed the country’s fiscal position and borrowing.
The ministry stated that the government’s domestic debt amounted to Rs55,363 billion, while foreign debt stood at Rs23,166 billion. The figures reflect the substantial size of Pakistan’s overall debt obligations and the challenges associated with managing public finances.
The Finance Ministry further informed lawmakers that Pakistan had obtained Rs2,845 billion in loans from the International Monetary Fund (IMF). IMF borrowing forms part of the country’s external financing arrangements aimed at supporting economic stability and meeting financial obligations.
One of the major figures revealed during the Senate briefing was the amount paid in interest. According to the ministry, the government paid a total of Rs32,239 billion in interest on loans between 2021 and fiscal year 2026.
During the same period, the government also repaid Rs102,780 billion in loans, demonstrating the scale of financial resources being allocated toward debt servicing.
The debt figures were presented at a time when lawmakers were discussing Pakistan’s fiscal challenges, borrowing requirements and the increasing cost of debt servicing. Interest payments consume a significant portion of government resources and can limit the funds available for development and public services.
The government maintains that debt repayment and interest costs are largely linked to borrowing undertaken in previous years. It has also emphasized efforts to increase revenue collection, strengthen fiscal management and reduce reliance on additional borrowing.
Opposition lawmakers, however, have repeatedly raised concerns over the growing debt burden and the impact of rising debt-servicing costs on the national economy.
The latest figures provide an overview of Pakistan’s debt position and the substantial amount paid toward interest and loan repayments over recent years. The government’s ability to control new borrowing while meeting existing obligations remains a key issue for the country’s economic outlook.
