Karachi: The Finance Ministry has strongly denied the rumours and misinformation circulating regarding interest payments on external debt. In a clarification statement, the ministry has clarified that Pakistan is paying an average of only 4% interest on its external debt, and the claim of 8% payment in this regard is completely misleading and contrary to reality. The ministry, while presenting the figures, said that interest payments in the fiscal year 2022 were $1.99 billion, which has increased to $3.59 billion in 2025.
The statement further explained that the increase in interest payments is 80.4 percent, while some reports are saying it is 84 percent, which is not correct. According to the ministry, the only reason for this increase in interest is not the increase in the volume of loans, but the increase in interest rates globally is also an important factor. In particular, the increase in interest rates by the US Federal Reserve from 5.25 to 5.50 percent increased the pressure on external payments globally, which also affected Pakistan.
The ministry has also provided a breakdown of payments made to the IMF and other financial institutions. According to the statement, a total of $1.50 billion was paid to the IMF, including $580 million in interest. Similarly, payments of $1.54 billion were made to the Asian Development Bank and $1.25 billion to the World Bank. The government says that despite the difficult circumstances, the restoration of foreign exchange reserves has been possible thanks to the IMF program and multilateral funding, and the government is committed to economic stability through responsible debt management.
