KARACHI: In the past 19 years, Pakistan has paid a substantial amount of $5.66 billion in interest on international Euro and Sukuk bonds.
Additionally, the country has repaid the principal sum of $7.50 billion during this period. This information was revealed during a briefing by officials from the State Bank and the Ministry of Finance to the Senate Standing Committee on Economic Affairs.
As of now, Pakistan still owes $6.8 billion, which must be settled by June 2024. The last international bond issued by Pakistan was in January 2022, following a $2.5 billion bond issuance in April 2021. The interest rates on these bonds were notably high, ranging from 5.75% to 8.75%.
Officials mentioned that the US Federal Reserve might reduce interest rates soon, with a similar trend observed in European, British, and Canadian markets.
There is also potential for a reduction in Pakistan’s policy rate. However, the Ministry of Finance clarified that no new bonds will be issued until global interest rates decline further.
