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Friday December 09, 2022

Pakistan’s Debt Repayments on Track’, SBP Chief on Depleting Forex Reserves

State Bank of Pakistan (SBP) Governor Jameel Ahmad has reiterated that all debt repayments are on track, adding that country’s foreign exchange reserves are expected to increase in the second half of the current fiscal year.

In the latest episode of the SBP podcast series, the governor revealed that separate loans of $1.2 billion had also been repaid to two foreign commercial banks. He said there was an understanding with the banks for the money to be returned but did not give a time frame.

During the podcast, he discussed the country’s capacity to meet its international financial obligations and addressed concerns over external account vulnerabilities.

He said, for the fiscal year 2023, around $33 billion were to be repaid to external stakeholders, including the current account deficit of $10 billion and $23 billion in loan repayments.

Out of the payable $23 billion external debt, Pakistan has already repaid more than $6 billion whereas as a bilateral loan of $4 billion has been rolled over with the cooperation of relevant countries.

Another $8.3 billion maturing obligations are expected to be rolled over as discussions are underway, Ahmad said, adding that the remaining outstanding repayment stands around $4.7 billion for the remainder of this fiscal year. 

This includes $1.1 billion in commercial loans that have to be paid to foreign banks and $3.6 billion in multilateral loans.

The post Pakistan’s Debt Repayments on Track’, SBP Chief on Depleting Forex Reserves appeared first on Abb Takk News.

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