Sindh Foreign Loans Jump 49% in Two Years
Sindh’s foreign loans rose by $1.839 billion in two years, a jump of nearly 49 percent and the fastest rise recorded by any province. The figures come from a Ministry of Finance document reported by ProPakistani on 2 November 2026.
The province owed $3.777 billion in foreign loans in June 2024. By June 2026, that figure had reached $5.616 billion. No other province grew its foreign debt at anything like the same pace over the same period.
Punjab still carries the largest foreign debt in the country, but its loans grew far more slowly. Punjab’s foreign debt rose by $376 million, about 6 percent, from $6.026 billion to $6.402 billion.
How the other provinces compare
Khyber-Pakhtunkhwa’s foreign debt increased by $595 million, or 25 percent, from $2.378 billion in June 2024 to $2.973 billion in June 2026. Balochistan’s foreign debt went up by $33 million, from $357 million to $390 million. Gilgit-Baltistan’s rose by $7 million, from $62 million to $69 million.
Azad Jammu and Kashmir was the only region to cut its foreign debt. Its loans fell by $29 million, from $209 million to $180 million over the two years.
Taken together, the foreign debt of the provincial governments rose by $2.821 billion over the two years, reaching $15.63 billion by June 2026. Sindh alone accounted for about 65 percent of that increase.
Sindh’s rise in perspective
The scale of Sindh’s rise becomes clearer when it is set against the other provinces. Sindh’s increase of $1.839 billion is almost five times Punjab’s increase of $376 million, even though Punjab remains the largest borrower overall. It is also nearly three times the combined increases of Khyber-Pakhtunkhwa, Balochistan and Gilgit-Baltistan, which together added $635 million over the same period.
In other words, the story of the last two years is not a general rise in provincial borrowing. It is a Sindh-led rise, with the other provinces adding comparatively small amounts, and one region, Azad Jammu and Kashmir, moving in the opposite direction.
What the shift means for Sindh
That share matters for Sindh’s own finances. Two years ago, Sindh held about 30 percent of all provincial foreign debt. It now holds roughly 36 percent. The gap between Sindh and Punjab, the largest borrower, has narrowed to less than $800 million, with Punjab at $6.402 billion and Sindh at $5.616 billion.
Foreign loans taken by a province are normally tied to development spending, and they are repaid from provincial resources over time. A faster rise in borrowing therefore raises two plain questions for readers in Sindh: what the extra money paid for, and how repayments will sit alongside the province’s existing spending on services such as health, education and water.
The ministry document reported by ProPakistani gives the stock of loans, not a project-by-project account of how the new borrowing was used. That detail is what would turn a debt figure into a full picture of value for money, and it is the detail to watch for when the province next reports on its foreign-funded work.
For now, the headline is clear. Sindh borrowed faster than every other province in the two years to June 2026, and it now carries more than a third of all provincial foreign debt in Pakistan.
Frequently asked questions
By how much did Sindh’s foreign loans rise?
They rose by $1.839 billion, or nearly 49 percent, from $3.777 billion in June 2024 to $5.616 billion in June 2026.
Which province has the largest foreign debt?
Punjab, at $6.402 billion. Its debt grew by about 6 percent over the same two years, much more slowly than Sindh’s.
How much did total provincial foreign debt rise?
It rose by $2.821 billion to $15.63 billion by June 2026. Sindh accounted for about 65 percent of that increase.
Did any region cut its foreign debt?
Yes. Azad Jammu and Kashmir was the only region to do so, cutting its foreign debt by $29 million to $180 million.
Where do these figures come from?
A Ministry of Finance document, as reported by ProPakistani on 2 November 2026.
