Outstanding Pakistan foreign debt has reached to highest level to $96.735 billion, the State Bank of Pakistan declares.
The volume of the external Pakistan foreign debt and liabilities in the first quarter of the current fiscal year reported at 1.394 billion. Pakistan foreign debt stood at 95.342 billion at the end of the previous financial year ended at June 30, 2018.
Most of this increase in Pakistan foreign debt stemmed from the public external debt, which surged 14 percent to $76.340 billion.
Higher financing in the form of borrowing from Chinese disbursements, bilateral and commercial loans and the Euro bond/Sukuk proceeds added to Pakistan’s foreign debt.
The central bank’s data indicated that long-term Pakistan foreign debt stood at $64 billion at end-September, up from $56.3 billion at the same time last year.
The foreign reserves at the central bank fell to $7.602 billion in October from $13.491 billion in the same period previous year.
Moreover, recent rupee devaluation would have negative impact for the Pakistan foreign debt. The latest depreciation in the exchange rate will add around PKR 300 billion in the foreign debt, analysts believe.
Pakistan will likely to secure IMF bailout to meet its external financing needs of $31 billion, experts said.
The analysts were of the view that Pakistan’s external debt growing every year due to successive governments’ inability to enforce policies that could ensure sufficient non-debt creating inflows.
The new government of Pakistan Tehreek-e-Insaf (PTI) too does not have any short term option except for taking more loans to meet the country’s debt obligations.