The governor of the State Bank of Pakistan (SBP) revealed that the nation’s obligations for external debt for the Fiscal Year 2024 total $24.6 billion.
This comprehensive breakdown includes $20.7 billion as principal and $3.9 billion designated for interest payments.
MONETARY POLICY COMMITTEE (MPC) OF STATE BANK OF PAKISTAN (SBP) MAINTAINED STATUS QUO POLICY RATE
PAKISTAN’S DEBT REPAYMENT
Including a $1.4 billion interest payment and a $4 billion principal repayment, Pakistan has paid off $5.4 billion of this debt to date.
There is presently $19.2 billion in outstanding debt, of which $9.3 billion has been verified, and plans to roll over the remaining $12.4 billion.
There is a net remaining amount of $6.8 billion for the last seven months of the fiscal year after deducting the $4.3 billion principle and the $2.5 billion interest payment.
PAKISTAN’S FOREX RESERVES
Pakistan’s current foreign exchange reserves are roughly $7 billion, so the funding environment is a significant challenge. This calls into question the nation’s capacity to handle its obligations under the external debt in the upcoming months.
The SBP Governor’s repayment plan, along with a breakdown of Pakistan’s external debt, provided insight into the country’s financial dynamics and highlighted the need for strategic financial management and potential implications for the country’s economic policies going forward.
