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.
