Pakistan’s external debt rises to $92.2bn as Senate panel flags loan misuse

Islamabad, Pakistan – Pakistan's external debt has surged to $92.2 billion as of August 31, 2025, sparking urgent concerns in parliamentary circles about fund management and transparency.

During a recent Senate Standing Committee on Economic Affairs meeting, Ministry of Finance officials revealed the alarming figures, prompting lawmakers to demand a comprehensive audit of all borrowing since 2008. The investigation specifically targets two high-profile concerns: a Rs172 billion CAREC project and suspicious delays in Sindh province's infrastructure tenders.

"We need complete transparency," emphasized Senator Ayesha Raza, committee chairperson. "Citizens deserve to know how public funds are being utilized, especially when we're talking about billions in international loans."

The committee's probe comes amid growing public unease about Pakistan's mounting debt burden. Finance ministry officials acknowledged the scrutiny while defending borrowing decisions as "necessary for infrastructure development."

"Every penny must account for," added Senator Iqbal Zafar Jhagra. "We can't afford another Nandipur-style scandal."

The Asian Development Bank (ADB) has been asked to provide detailed documentation regarding its funded projects, with particular focus on procurement processes and fund utilization reports.

Economists warn that Pakistan's debt-to-GDP ratio now exceeds 70%, raising red flags about long-term economic sustainability. The World Bank previously flagged similar concerns in its 2025 Pakistan Economic Update.

For complete project breakdowns and financial statements, the committee has requested all relevant ministries submit documentation by November 15.

Read the full investigation at Pakistan Today.