A Ministry of Finance document shows that foreign debt in Sindh grew by $1.839 billion, which is nearly 49 percent, across a two year period, marking the steepest rise among all provinces. Total outstanding foreign loans for the province climbed from $3.777 billion in June 2024 to reach $5.616 billion by June 2026, while Punjab maintains the country's largest foreign debt despite a much slower growth rate.
How Other Provinces Compare
Foreign debt in Khyber Pakhtunkhwa grew by $595 million, or 25 percent, moving from $2.378 billion in June 2024 to $2.973 billion in June 2026. Punjab added $376 million, representing an increase of about 6 percent, which moved its outstanding foreign debt from $6.026 billion to $6.402 billion, remaining the highest of any province. Balochistan saw its foreign debt climb by $33 million, shifting from $357 million to $390 million, while Gilgit-Baltistan increased by $7 million, moving from $62 million to $69 million. Azad Jammu and Kashmir stood as the sole region to reduce its foreign debt, dropping by $29 million, from $209 million to $180 million.
Sindh Drives Most of the Increase
Total foreign debt across all provincial governments grew by $2.821 billion during the two years, reaching $15.63 billion by June 2026. Sindh was responsible for roughly 65 percent of that total growth. The province now holds approximately 36 percent of all provincial foreign debt, compared to about 30 percent two years prior, bringing the gap with Punjab down to less than $800 million.
