External debt refers to the total financial obligations a country owes to foreign creditors. It includes loans and borrowings from foreign governments, international institutions, and private sector lenders. These debts must be repaid in foreign currency.
A country’s total financial obligations to the rest of the world are known as:
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Question context
This question is part of 🌍 Current Affairs within the broader 🌐 Current Affairs & GK subject and appears in the PPSC Punjab Public Service Commission preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.