Pakistan has paid approximately $16 billion in interest on foreign loans over the past four years, State Bank of Pakistan Governor Jameel Ahmed has revealed.
He said the country’s total external debt currently stands at around $107 billion, highlighting the significant cost of servicing its foreign borrowing.
According to the governor, between $10 billion and $11 billion of the interest payments were made using dollars purchased from the open market rather than funds obtained through fresh loans.
This reflects Pakistan’s efforts to meet its external payment obligations without relying entirely on additional borrowing.
Pakistan’s foreign exchange reserves have also increased from approximately $3 billion in early 2023 to around $21.5 billion.
Ahmed further stated that annual interest payments are expected to fall below $3 billion next year, potentially easing some pressure on the country’s foreign exchange position.
