Federal Information and Broadcasting Minister Fawad Chaudhry estimated on Tuesday that outgoing Pakistani government Tehreek-e-Insaf (PTI) would pay $ 55 billion in external debt repayment during its five-year term which ends in 2023.
The minister drew a comparison to the $ 27 billion paid to the previous Muslim League of Pakistan-Nawaz (PML-N) during his five-year tenure in a tweet, adding that $ 12.27 billion would be paid. in the current fiscal year, with an additional $ 12.5 billion in FY23.
“The foreign debt payment this year (FY22) alone is $ 12.27 billion and about the same $ 12.5 billion for FY23,” the federal minister said.
The statement comes as Pakistan’s external debt and liabilities reached $ 127 billion at the end of September 2021.
External debt and liabilities hit $ 127 billion at the end of September
According to data from the State Bank of Pakistan (SBP), Pakistan’s debt and external liabilities increased by $ 4.85 billion in the first quarter of this fiscal year (FY21). The country’s external debt and liabilities reached $ 127.023 billion at the end of September 2021, compared to $ 122.209 billion in June 2021.
However, as a percentage of GDP, total debt and external liabilities were almost stable at 40.2% in September 2021. Official foreign exchange reserves fell from $ 17.441 billion to $ 19.374 billion from July to September of fiscal year 22. .
Total outstanding debt and liabilities include the Paris Club, IMF loan, foreign currency liabilities, secured and unsecured public sector enterprise (PSE) debt, bank loans, non-residential deposits, secured / unsecured private sector debt and foreign currency liabilities and debts to direct investors.
The Pakistani economy continues to be under enormous pressure amid a growing current account deficit, driven by growth in imports, while remittances show a decline.
November: Pakistan’s current account deficit widens further to $ 1.91 billion
Data released by the central bank on Monday showed Pakistan’s current account deficit widened further to $ 1.91 billion in November 2021, from $ 1.76 billion in October, and a complete turnaround. as of November 2020 where it posted a surplus of $ 563 million.
This story was first published in Business Recorder on December 21, 2021.