IMF data shows Maldives’ debt burden surpasses all SAARC nations, including Bhutan and India

Maldives is the most indebted country in South Asia in terms of debt‑to‑GDP ratio, according to the latest figures released by the International Monetary Fund (IMF).

The IMF’s updated data shows Maldives’ total public debt has reached 125.4 percent of GDP, the highest in the region. Economists note that this level of debt poses a significant challenge to the country’s macroeconomic stability.

Bhutan follows as the second most indebted country with debt at 103.6 percent of GDP. India, the region’s largest economy, has a debt ratio of 84.1 percent, while Pakistan, currently facing a severe economic slowdown, stands at 72.8 percent. Nepal’s debt is recorded at 48.1 percent, and Bangladesh remains the least indebted country in South Asia at 42 percent of GDP.

Maldives’ debt level is nearly three times higher than that of Bangladesh. The country is now under pressure to strengthen fiscal discipline to manage its debt burden and ease strain on public finances. The IMF’s comparison underscores the urgency for Maldives to accelerate fiscal reforms.

The government passed a record budget this year, driven largely by total debt obligations amounting to USD 1.1 billion. According to the latest figures from the Finance Ministry, MVR 8.7 billion has been spent on loan repayments as of the 14th of last month.

Former President Abdulla Yameen Abdul Gayoom has claimed Maldives’ debt could rise to MVR 90 billion within the next two years if President Dr. Mohamed Muizzu remains in office.