Islamabad [Pakistan]Feb 21 (ANI): Pakistan’s external debt and liabilities rose by $3 billion or 2.6% in the six months to December last year, central bank data shows earlier this week.
According to The News, through December, the country’s external debt and liabilities stood at $115.7 billion compared to $112.7 billion through the end of June. Total external debt and liabilities stood at USD 110.7 billion as of December 2019, according to the State Bank of Pakistan (SBP).
External Debt and Liabilities (EDL) had risen sharply even before the onset of the coronavirus pandemic due to falling exports, sharp exchange rate depreciation, tight monetary policy and falling foreign exchange rates. non-debt-creating inflows, said economist Ashfaque Khan.
“However, COVID-19 has further aggravated the country’s debt situation,” Khan said as quoted by The News. “When Pakistan is in the bosom of the IMF [International Monetary Fund] program, the debt is accumulating rapidly.
The Pakistani outlet further reported that State Bank data further showed that an expansion of EDL has occurred in both the public and private sectors. A significant increase in external debt comes from disbursements from multilateral donors and bilateral creditors.
It was further reported that public external debt stood at $90.5 billion as of December 31 last year, down from $87.8 billion at the end of June. This was recorded at USD 87.6 billion through the end of December 2019.
The News reported that the government’s external debt rose to $74.8 billion in July-December for fiscal year 2021, from $70.3 billion a year earlier. Long-term external debt stood at $73.9 billion at end-December, down from $68.7 billion at end-June. It was $68.1 billion a year earlier.
Pakistan has secured $1.7 billion in debt relief from G-20 countries in collaboration with Paris Club creditors under the debt service suspension initiative, announced to provide fiscal space for struggling economies affected by Covid-19 and lockdown. (ANI)