Tuesday, June 25, 2024

Pakistan to Repay Foreign Debt Worth $22 Billion in 12 Months

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.

Upon the successful restart of the International Monetary Fund (IMF) programme, the cash-strapped government is anticipated to begin negotiations with creditors to restructure its foreign debt.

The country’s debt obligations are currently much higher than the incoming funds it anticipates receiving in the upcoming years. Data from the State Bank of Pakistan (SBP) suggests that Pakistan is to repay a total debt of $21.95 billion in one year: $19.34 billion in principal and another $2.60 billion in interest on the total debt.

According to data shared by the Pak-Kuwait Investment Company (PKIC), however, the central bank has projected no foreign debt inflows for the next 12 months.

According to the data, the country will pay off $3.95 billion in one month. In the next three months, it is due to return $4.63 billion and is to repay another $13.37 billion in the last eight months of the period under review.

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