Country's external liabilities soar past $138b

ISLAMABAD:

Pakistan's external debt and liabilities have exceeded $138 billion, while interest payments on external loans increased by 84% over the past three years. During this period, interest payments alone rose from $1.91 billion to $3.59 billion.

According to details, interest payments on external debt increased by 84% in three years. Compared to 2022, interest payments last year rose by $1.67 billion. This interest was paid to the IMF, World Bank, Asian Development Bank (ADB), and commercial banks.

Pakistan is paying interest on external loans at rates of up to 8%. Officials said that Saudi Arabia and China also received interest on safe deposits. Including interest, Pakistan spent $13.32 billion annually on debt servicing. Net external debt increased by $1.71 billion last year.

The country borrowed $114.4 million and repaid $9.73 billion in principal. On external commercial loans, Pakistan paid nearly $3 billion, including $327 million in interest. Pakistan paid $2.10 billion to the IMF, including $580 million in interest. Under the Naya Pakistan Certificates, $1.56 billion was paid, including $188 million in interest.

The country paid $1.54 billion to the ADB, including $615 million in interest, and $1.25 billion to the World Bank, including $419 million in interest.