KARACHI: Pakistan's external debt and liabilities reached historical level of $113.8 billion at the end of September 2020, due to fresh borrowing from multilateral and bilateral sources on account of public debt.
The latest statistics issued by the State Bank of Pakistan (SBP) showed that the country’s foreign debt and liabilities continue to grow and surged by $945 million during the first quarter (July-Sep) of this fiscal year (FY21).
Pakistan’s total external debt and liabilities have surged to $113.803 billion as on September 30, 2020 compared to $112.858 billion as on June 30, 2020. However, as percent of GDP, total external debt and liabilities declined by some 4 percent to 41.4 percent in the first quarter of FY21.
The total stocks of debt and liabilities comprises Paris Club, Euro Sukuk global Bond, IMF loan, foreign exchange liabilities; Public Sector Enterprises (PSEs) guaranteed debt and non-guaranteed debt, banks borrowing, non-residential deposits, private sector guaranteed/non-guaranteed debt and foreign exchange liabilities and debt liabilities to direct investors.
The detailed analysis revealed that with 78 percent share, public external debt rose by one percent during the first quarter of this fiscal year. Out of total external debt and liabilities, external public debt stood at $88.938 billion in September 2020 compared to $87.885 billion end of June 2020, depicting an increase of stood at $ 1.053 billion.
During the period under review, Paris Club debt increased from $10.924 billion to $11.203 billion. However, IMF debt was slightly declined by $76 million to $7.604 billion. In addition, Public Sector Enterprises (PSEs) debt also went down from $4.9 billion to $4.77 billion.
The banks' borrowing stood at $4.356 billion and private sector debt at $11.438 billion end of September 2020. Economists said that fresh borrowing from multilateral and commercial sources has increased the external debt burden. During the period under review, the official foreign exchange reserve decreased from $12.55 billion to $12.3 billion.
Copyright Business Recorder, 2020
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