ISLAMABAD
\nPakistan will need to repay over $23 billion in external debt during the ongoing financial year, The amount includes multilateral and bilateral loans, international bonds, and commercial borrowings.
\nOut of the total $23 billion in external debt servicing, there are deposits of $12 billion in two different categories, with the expectation of securing a rollover from the \u2018generous\u2019 friendly countries.
\nIslamabad will have to repay around $11 billion in external debt servicing to the multilateral, bilateral creditors, international bondholders and commercial lenders in the current fiscal year.
\nHowever, if bilateral creditors refuse to grant rollover out of the total foreign deposits, then there is a risk of its repayment.
\nThe foreign debt servicing requirement will go up and is going to require $500 million repayment in September 2025 on account of maturity of Eurobond.
\nThe debt to GDP ratio, which has witnessed improvement owing to ballooned inflationary pressures, resulted in jacking up the nominal GDP growth numbers in the past few years, but now in the wake of reduced inflation and lowering nominal growth, the debt to GDP ratio is going to worsen in the coming months. \u201cThe total public sector external debt requirements are hovering at $15 billion, including $4 billion SAFE Deposits from China on the books of the Ministry of Finance and Economic Affairs Division for the ongoing FY2025-26,\u201d top official sources said.
\nThe remaining $9 billion external debt servicing is on the books of the State Bank of Pakistan (SBP), including loans obtained from the IMF and foreign deposits on which the rupee cover for the budgetary support is not allowed. Of these deposits, $5 billion is from the Kingdom of Saudi Arabia, $2 billion from the UAE, and approximately $1 billion from Qatar. From the old days, there are deposits of $700 million lying in the SBP from Kuwait.
\nOf two major repayments that will become due on the maturity of Eurobonds, one will be due in September 2025, worth $500 million, which was launched for 10 years, backed in 2015 at the rate of 8.25%. The second repayment will be due on the maturity of Eurobond worth $1 billion, which was launched in April 2021 at a rate of 6% for five years.
\nThere will be total bond repayment of $1.7 billion along with interest payment, commercial loans of $2.3 billion, multilateral creditors\u2019 repayment of $2.8 billion from the World Bank, the Asian Development Bank, the Islamic Development Bank, and the Asian Infrastructure Investment Bank and bilateral loans repayment of $1.8 billion during the current fiscal year.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Pakistan will need to repay over $23 billion in external debt during the ongoing financial year, The amount includes multilateral and bilateral loans, international bonds, and commercial borrowings. Out of the total $23 billion in external debt servicing, there are deposits of $12 billion in two different categories, with the expectation of securing a […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-491188","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n