Pakistan’s financial position has been detailed in Parliament, revealing a mixed picture of foreign exchange reserves alongside a continued rise in both external and domestic debt.
According to a briefing presented by the Ministry of Finance, the country’s total foreign exchange reserves currently stand at $21.4 billion. Of this amount, the State Bank of Pakistan holds $16.2 billion, while commercial banks account for approximately $5.19 billion.
Officials informed lawmakers that despite maintaining a stable level of reserves, Pakistan’s external debt and liabilities have increased significantly during the year 2025. The total external debt has now reached $138 billion, reflecting an increase of $7.2 billion over the past year.
The ministry further reported a sharp rise in domestic borrowing as well. Internal debt has increased by Rs5,480 billion, pushing the total stock of internal debt to Rs55,363 billion.
Economists have long cautioned that rising debt levels, particularly when paired with limited fiscal space, can place additional pressure on economic stability and repayment capacity. However, officials maintain that ongoing economic reforms and engagement with international financial institutions are aimed at improving long-term macroeconomic stability.
The data has sparked renewed discussion in policy circles regarding debt sustainability, revenue generation, and the need for structural reforms to reduce reliance on borrowing.
