Pakistan is set to repay $24.8 billion in external debt during the current fiscal year, according to data released by the State Bank of Pakistan (SBP).Â
The obligations include $21.2 billion in principal repayments and $3.6 billion in interest payments.
The SBP data indicates that Pakistan will need to pay $4.98 billion in July, $2 billion in both August and September and $17.8 billion from October to June 2025. The total amount is slightly less than the $26.2 billion previously quoted by SBP Governor Jameel Ahmad.
Governor Ahmad explained that out of the $22 billion required for principal repayments, $16.3 billion is expected to be rolled over, leaving $10 billion to be repaid. With $1.1 billion already repaid in July, net repayments for the first 11 months of this fiscal year stand at $9 billion.
The SBP projects that its foreign exchange reserves will increase to $13 billion by the end of FY25, up from the current $9.1 billion. The quality of these reserves is reportedly better than in previous years.
In July, Pakistan secured a $7-billion bailout from the IMF to stabilise the economy. Discussions with Saudi Arabia, the UAE, and China are ongoing to meet financing needs under the IMF program.
The central bank has maintained the key interest rate at 19.5%, anticipating inflation to be between 11.5% and 13.5%.
In a significant development, global rating agency S&P has affirmed Pakistan’s long-term sovereign rating as ‘CCC+’, citing the country’s reliance on external aid amidst a prolonged economic crisis.Â
Fitch Ratings recently also upgraded Pakistan’s long-term foreign currency issuer default rating to ‘CCC+’ due to increased external funding under the new IMF deal.
