• SBP data shows $4bn interest paid on debt servicing in nine months
• Overseas inflows ease pressure on growing trade deficit

KARACHI: Pakistan paid over $3.8 billion in external debt servicing in the third quarter of the current fiscal year (FY25), including $1.263bn as interest, the State Bank reported on Monday.

In 2025, Pakistan’s external debt servicing amounted to $26bn and initially appeared to be a very difficult task; however, the government has come close to achieving the target.

The SBP data showed that Pakistan paid $2.134bn as principal during the first quarter (July-September FY25), while $1.343bn was paid as interest.

The State Bank reported that a total of $7.47bn was paid as principal during the first three quarters (July-March), while $3.99bn was paid as........

© Dawn Business