Pakistan's Central Bank Outlines $30 Billion Debt Repayment for FY25
Pakistan's Central Bank Debt Repayment Overview
Islamabad: Pakistan's central bank has stated that the country is expected to repay a total of $30.35 billion in maturing foreign debt and interest payments in FY25.
Despite the rising foreign debt obligations, the state's repayments and interest payments are firmly backed by the recent $7 billion IMF Extended Fund Facility, which spans 37 months. The forthcoming financial commitments from August 2024 to July 2025 include crucial loans that the bilateral creditors roll over annually, as noted in a JS Global report.
Debt Details and Economic Indicators
- Maturing foreign debt amounts to $26.48 billion.
- Interest expenses stand at $3.86 billion.
- The foreign debt-to-GDP ratio has fallen to 20.2% as of August 2024.
As compared to the $21.2 billion (including rollovers) paid during the previous fiscal year, the current debt repayment requirement reflects a substantial rise in liabilities.
Market Implications and Future Prospects
- Saudi Arabia and UAE provided around $4 billion in loans.
- Another $2 billion was lent by the IMF between August 2023 and April 2024.
- Estimates indicate the addition of fresh loans worth $3 billion to $4 billion in FY25.
The report suggests that Pakistan’s government must find ways to boost foreign income and reduce external expenditures, thereby improving the nation’s capability to meet its financial obligations and expand its foreign exchange reserves.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.