debt servicing

External debt and liabilities rose to $128.92 billion by end-March

external debt and liabilities

Pakistan’s external debt and liabilities (outstanding) have shown an increase of 5.41 percent to $128.92 billion during the first nine months of the current financial year, the central bank revealed the data on Thursday. 

The external debt and liabilities (EDL) reached $122.292 billion by the end of June 2021. 

The EDL was found to be at $130.636 billion during the period ended on December 31, 2021. However, these debts and liabilities were $116.307 billion by the end of March 2021. 

The EDL continued to move up after the government took loans from international financial institutions, the Paris Club, multilateral agencies, and commercial sources to tackle the budget deficit, finance the existing account gap, and accumulate foreign exchange reserves. 

Moreover, on March 31, 2022, the public external debt was $100.296 billion. It was found at $95.1 billion at the end of June 2021. 

Read more: Pakistan added $4.77 billion to total public debt of $90.6 billion in first half of FY22

The government’s external debt increased to $81.294 billion during the year to the end of March from $79.073 billion till the end of June 2021. 

Meanwhile, the long-term external debt and liabilities stood at $79.863 billion at the end of March, an increase from $78.215 billion at the end of the last financial year. 

Debt built via multilateral sources increased from $33.836 billion to $34.513 billion at the End-June 2021. 

Loans taken from bilateral sources stood at $17.151 billion, as compared to $14.821 billion by end-June, 2021. Debt acquired through the IMF was $7.471 billion from $7.384 billion. Debt obtained through Euro Sukuk bonds did not change and remained at $8.80 billion. 

Besides, the foreign investment in long-term government securities also saw an increasing trend. Debt through Naya Pakistan Certificates increased to $1.327 billion from $809 million. 

The rise in the EDL has put great pressure on the foreign exchange reserves. The cost of debt servicing has also increased. The servicing of external debt jumped to $4.875 billion during the third quarter of FY2022 from $4.357 billion three months back. 

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