Pakistan to repay over $27bn in foreign debt within a year

Payment includes $23.83 billion in principal loans and $3.64 billion in interest costs

The State Bank of Pakistan (SBP) has recently disclosed that Pakistan has to repay foreign debt amounting to $27.47 billion by November 2024. This repayment includes both the principal loans and interest costs.

A detailed analysis of the SBP data reveals that from December 2023 to November 2024, Pakistan is obligated to repay $23.83 billion in foreign debt and an additional $3.64 billion in interest payments. The bank’s latest update, issued on Wednesday, said that $4.29 billion in debt and interest costs had to be paid in December 2023 alone.

As per the repayment schedule, Pakistan must fulfill payments of $3.47 billion in January and February,  and a further $19.71 billion is due from March to November.

Economic experts think that Pakistan will require another IMF loan program to ensure the smooth repayment of its debts following the conclusion of the current standby arrangement in March 2024. The payments due are marginally higher than the average forecast of $20-22 billion for the next 12 months.

The interim finance minister, Shamshad Akhtar, had previously indicated in November of the last year that Pakistan’s fragile economy might necessitate continued borrowing from the IMF.

The anticipated next IMF loan program is expected to provide a critical safety net to bridge the projected current account deficit. 

In December 2023, SBP Governor Jameel Ahmad stated that Pakistan was scheduled to pay $24.6 billion in foreign debt and debt servicing by the end of June 2024. This figure includes a rollover of $12.4 billion, with $9.3 billion of this amount already confirmed by creditors.

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34 COMMENTS

  1. the govt is finding ways to keep borrowing loans without repaying them and implementing new ways to tax people.industrialists are finding ways to evade taxes.small business and retailers are manipulating items or fluctuating prices in order to increase their income.politicians are busy looting people by using law enforcement agencies.common people(cheats) finding ways to increase their income by fair and unfair methods(like registering their name on benazir funds or begging on streets).only those who wants to live decently and legally are paying the price and their numbers are getting reduced each month.out of all taxes the bill of K electric is justifiable.so called lucifers republic of devils.

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