Though the South Asia Region (SAR) contains just eight countries, it accounts for almost a quarter of the world’s population. But it also carries an increasing share of global debt. Half of the countries in the region—Afghanistan, Maldives, Pakistan, and Sri Lanka—are either in debt distress or at high risk of it. In 2006, South Asia’s total external debt stock increased by a record 23 percent. In 2022, the ratio of government debt-to-GDP in the region averaged 86 percent, higher than that of any other emerging market and developing economy (EMDE) region. […]