India tops South Asia in external debt, Pakistan second

ISLAMABAD – India has topped the list of South Asian countries with the highest external debt, while Pakistan ranks second, a 2026 regional debt report unveiled on Monday. The report said that India’s total external debt stands at $765 billion, making it the most indebted country in South Asia in absolute terms. On a per capita basis, each Indian carries an estimated external debt burden of $535. Pakistan ranks second with $138 billion in external debt, translating into an average debt burden of $530 per citizen. Bangladesh is placed third with $102 billion in external debt, equivalent to $590 per capita, followed by Sri Lanka, whose external debt has reached $57 billion, with a per capita burden of $2,590. South Asian Countries and their foreign debt: Rank Country External Debt (US$ bn) Per Capita Debt (US$) 1 India 765 535 2 Pakistan 138 530 3 Bangladesh 102 590 4 Sri Lanka 57 2,590 5 Nepal 11 370 6 Bhutan 3.5 4,400 7 Maldives 4 7,500 8 Afghanistan 2.5 60 Nepal ranks fifth with $11 billion in external debt, or approximately $370 per person. Bhutan’s total external debt stands at $3.5 billion, but its per capita debt burden is significantly higher at $4,400, while the Maldives has $4 billion in external debt, giving it the region’s highest per capita debt burden of $7,500. Afghanistan has the lowest external debt among the eight countries, with total foreign liabilities of $2.5 billion, equivalent to about $60 per citizen, the report said. Pakistan Set to Lead SCO Business Council in 2027