An audit has revealed that five countries owe Pakistan a total of $304.5 million, with the Auditor General of Pakistan (AGP) recommending that the matter be addressed through diplomatic channels for recovery.
The defaulters include Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau, which have failed to repay loans extended by Pakistan in the 1980s and 1990s as part of export credit agreements. In Pakistani rupees, the total unpaid amount exceeds Rs86 billion.
Iraq holds the largest outstanding debt, amounting to $231.3 million, followed by Sudan with $46.6 million. Bangladesh owes $21.4 million, linked to sugar plant and cement projects, while Guinea-Bissau’s debt stands at $3.653 million.
Officials from the Ministry of Economic Affairs confirmed that efforts are underway to recover the funds through the Foreign Office, utilising diplomatic routes and joint ministerial committees. Reminder letters and demand notices have been sent to the defaulting countries.
The AGP had previously flagged these unpaid amounts in the 2006-07 audit, with demand letters and notices sent at that time as well.
