KARACHI: The State Bank of Pakistan (SBP) has recently disclosed that Pakistan has to repay foreign debt amounting to $27.47 billion by November 2024. This repayment includes both the principal loans and interest costs.
A detailed analysis of the SBP data reveals that from December 2023 to November 2024, Pakistan is obligated to repay $23.83 billion in foreign debt and an additional $3.64 billion in interest payments. The bank’s latest update, said that $4.29 billion in debt and interest costs had to be paid in December 2023 alone.
As per the repayment schedule, Pakistan must fulfill payments of $3.47 billion in January and February, and a further $19.71 billion is due from March to November.
Economic experts think that Pakistan will require another IMF loan program to ensure the smooth repayment of its debts following the conclusion of the current standby arrangement in March 2024. The payments due are marginally higher than the average forecast of $20-22 billion for the next 12 months.
The interim finance minister, Shamshad Akhtar, had previously indicated in November of the last year that Pakistan’s fragile economy might necessitate continued borrowing from the IMF.
The anticipated next IMF loan program is expected to provide a critical safety net to bridge the projected current account deficit.
In December 2023, SBP Governor Jameel Ahmad stated that Pakistan was scheduled to pay $24.6 billion in foreign debt and debt servicing by the end of June 2024. This figure includes a rollover of $12.4 billion, with $9.3 billion of this amount already confirmed by creditors.
