- Among the bilateral creditors of Pakistan, China is on top.
- More than half of Pakistan’s external debt is multilateral.
- Public external debt increased by $ 2.5 billion during fiscal year 200.
Islamabad: About 92% of Pakistan’s external debt is due for three main sources, including multilateral and bilateral creditors, as well as through international bonds.
Among bilateral creditors, China is at the top of total debts and external liabilities.
Total debt and liabilities are calculated after incorporating the national and external debt payable of the consolidated fund, IMF loans for support of payments, soes debt, debt for basic products and external debt operations of the private sector.
However, the public debt excludes the debt of SAE, the debt to the operation of basic products and the external debt of the private sector. The total public debt is calculated on the basis of the national and external debt payable of the consolidated fund and the IMF loans for BOP support.
Now, the total external debt and liabilities stood at $ 133 billion, but the public external debt in accordance with the definition of the Law of Limitation of Fiscal Responsibility and Debt (FRDLA), stood at $ 88,578 billion to end of September 2024.
The Ministry of Finance has prepared a debt policy statement for January 2025, but so far it has not yet been established before Parliament. The process of obtaining the approval of the federal cabinet has been underway.
However, the sources said the government has also lost the deadline to issue a debt bulletin report until the end of September 2024 under the conditions of the World Bank loan, but was carried out in October 2024.
The total external debt continued to increase during Q1-fy 25 and stood at $ 88.7 billion as of September 2024.
In terms of composition of external debt, the outstanding characteristics illustrate that more than half of Pakistan’s external debt (56% to September 24) is from multilateral lenders, including WB, ADB, IMF and others.
The second important source of external debt is bilateral partners, including Paris Club, which has approximately 28% of the external debt. 14% of the external debt is from commercial sources; 8% international bond emissions and 6% commercial banks.
During the fiscal year24, the actions of the external debt (in USD) witnessed a net increase of 3% year -on -year, while the participation of the external debt in the total public debt decreased from 38% (June 23) to 34% (June 24).
However, the exposure of the external debt is still within the maximum limit of 40% as provided in the MTD, but remains sensitive to the movement of the exchange rate.
The breakdown of external debt shows that most loans are obtained from multilateral financial institutions and bilateral sources.
These types of loans are hired in low or concessional rates with long -term tenors compared to commercial sources.
As of September 24, 84% of loans come from multilateral and bilateral sources.
Public external debt increased by $ 2.5 billion during fiscal year24 and at $ 2 billion at the end of September 2024. Total external loan disbursements amounted to $ 9.8 billion during fiscal year 200
The disbursements were mainly from multilateral and bilateral sources. The main disbursements of bilateral sources included time deposits of $ 2 billion of Saudi Arabia and $ 1 billion of the EAU as deposits with the Central Bank.
The main disbursements of multilateral sources included $ 2.2 billion from the World Bank, $ 1.3 billion of ADB and $ 345 million from AIIB.
