Pakistan is scheduled to repay $4.33 billion in foreign debt in April-June of the current fiscal year to avoid default.
A $1 billion 10-year sovereign bond is due on April 15, 2024.
An amount of $32.88 million in principal and interest payments to bilateral creditors (including Japan, France, Korea, and others) will have to be paid in the last quarter of FY24. Meanwhile, external debt servicing liabilities will increase to $754 million in 4QFY24.
Other payments include $1.232 billion to commercial banks and $265 million to the International Monetary Fund, $66 million in Naya Pakistan Certificate payments, $406.8 million to multilateral creditors like the Asian Development Bank (ADB), and $185.3 million to the World Bank’s International Development Association (IDA)
Despite entering into an IMF Standby Arrangement (SBA) last year, the federal government has failed to increase Pakistan’s foreign exchange reserves. Heavy debt repayments have hindered efforts to build reserves, challenging the country’s ability to meet its commitments to creditors expecting repayment.
With foreign exchange reserves held by the State Bank of Pakistan (SBP) currently at $7.89 billion, there would likely be a request for a rollover of $1 billion from China to help ease the debt burden.
