Pakistan's Premier Multilingual News Agency

Pakistan to pay $22 billion in debts in coming year

The State Bank of Pakistan reports that it must pay back foreign debt and interest totaling over $22 billion over the course of the next 12 months, despite efforts to avert the impending risk of default.

Islamabad, 8 February 2023 (GNP): According to State Bank of Pakistan (SBP) data, Pakistan must pay back a total of $21.95 billion in debt in a single year, including $2.60 billion in interest on a principal balance of $19.34 billion.

According to the data breakdown, the nation must repay $3.95 billion within a month. It must restore $4.63 billion in the following three months and another $13.37 billion in the final eight months of the time period under consideration.

Upon the successful restart of the International Monetary Fund (IMF) program, the government which is short of funds is anticipated to begin negotiations with creditors to restructure its foreign debt. The country’s debt obligations are currently much more than the incoming funds it anticipates receiving in the upcoming years.

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According to Samiullah Tariq, PKIC Head of Research: “Pakistan is passing through an extraordinary financial crisis. Accordingly, it needs to take extraordinary measures. The country needs thoughtful planning to sail out of its current financial crisis and enter into a definite future. It should work on all the available options to control foreign expenditure and boost income.”

He continued saying: “The country needs to boost the confidence of overseas Pakistanis and make the domestic economy attractive in order to secure increased Roshan Digital Account (RDAs) inflows. The government has recently revised the rate of return on Naya Pakistan Certificates to attract higher inflows from non-resident Pakistanis. Apart from the this, the government should restructure its existing debt, enter the new IMF program after the current one ends in June 2023, cut imports, boost export earnings and workers’ remittances through official channels.”