FILE PHOTO: An employee counts U.S. dollar bills at a money exchange in central Cairo, Egypt, March 20, 2019. REUTERS/Mohamed Abd El Ghany
Pakistan is scheduled to repay $10.35 billion in foreign debt over the next 6 months in order to avoid default.
According to a national daily, an amount of $3.79 billion in principal and interest payments will have to be paid in the first quarter (July-September) of the fiscal year 2023-24. Meanwhile, external debt servicing liabilities will increase to $6.568 billion in the second quarter (October-December) of the fiscal year (FY) 2023-24.
Pakistan requires emergency cash of up to $6 billion if the IMF program is not revived by the end of this month.
Pakistan needs to repay $1.219 billion in Eurobonds in the second quarter (October-December), including $1 billion in principal and $219 million in interest payments.
According to the report, there would be a rollover of $4 billion, including $1 billion from China in July 2023 and the remaining $3 billion from Saudi Arabia in October-December. However, Pakistan would be required to pay $6 billion in external debt repayments, putting its forex reserves in a precarious situation.
Pakistan will have to repay $363 million to China under guaranteed loans in the first quarter of FY24, including $280 million in principal and $83 million in interest payments.
A total of $1.05 billion in bilateral debt would mature in 1QFY24, including $15 million to France, $24.67 million to Japan, $0.6 million to Korea, $591 million to China, $6.5 million to Kuwait, and $2.29 million to the UAE.
Another debt payment of $398.08 million to Saudi Arabia will mature in 1QFY24, while $12 million in penalties will have to be paid to international creditors.
Pakistan will return $72 million as interest on the Eurobond in Q1, and a commercial loan repayment of $84 million will be made in the form of interest payments.
Pakistan will repay China $1.096 billion in SAFE deposits, a $30 million interest payment to Saudi Arabia, $235 million to IMF, $93 million in Naya Pakistan Certificates, and $660.58 million to multilateral creditors including $298 million to Asian Development Bank, $9.23 million to Asia Infrastructure Investment Bank, $9 million to unspent balance, $227.67 million to World Bank’s (WB) IDA loan, $90.5 million to WB’s IBRD, and $22.31 million to Islamic Development Bank (IDB).
Pertinently, Pakistan will further pay back a short-term loan of $107.57 million to IDB.
Total grand foreign loan obligations of $3.79 billion will mature in 1QFY24, comprising $2.99 billion in principle and $801.6 million in interest payments.
Official data reveals Pakistan would be required to repay a Chinese commercial bank of $33.38 million during 2QFY24. Meanwhile, the Kingdom of Saudi Arabia’s (KSA) deposit payback will be $3.03 billion, consisting of $3 billion as principal and $30 million in interest repayment.
The IMF will be repaid $228 million in 2QFY24, while an $80 million payment will be made in the name of Naya Pakistan Certificates during the same period. Total loan repayments to foreign multilateral creditors will be $730.29 million during the quarter, while an IDB short-term loan repayment of $64.2 million will be made as per schedule.
As it stands, Pakistan would be required to repay $6.568 billion in Q2. It is yet to be determined how the country plans on fulfilling its extraordinary debt obligations with forex reserves at the $3.5 billion level.
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