Pakistan, Aug. 24 -- Pakistan's external debt servicing pressure climbed to a concerning level in the last fiscal year despite growth in foreign exchange reserves, as repayment of deposits from the United Arab Emirates pushed the key coverage ratio to 115 percent in FY26, according to research by Topline Securities based on State Bank of Pakistan data.

The ratio of external public debt servicing due in one year to the country's foreign exchange reserves, a widely tracked measure of external vulnerability, stood at 115 percent for FY26. A lower ratio indicates better FX coverage and greater ability to meet external obligations without straining reserves.

The report stated the deterioration in FY26 occurred even though reserves increased ...