Pakistan’s FY27 external debt servicing projected at $21.5bn: SBP governor

The State Bank of Pakistan (SBP) reported on Monday the country’s external debt servicing would be around $21.5 billion for the current fiscal year 2026-27, almost $5 billion lower compared to $26.5 billion repaid in the previous fiscal year 2025-26.

Providing a breakdown, SBP Governor Jameel Ahmad said the country is expected to repay $18 billion in principal during FY27, while interest payments are projected at $3.5 billion.

“Out of the total $21.5 billion for FY27, [around] $6 billion is already settled in July 2026,” he said, adding July repayments included $4 billion in principal payments and $1.4 billion in interest payments.

The central bank chief said that in a press conference held to announce the bank’s key policy rate for the next six weeks.

The SBP’s Monetary Policy Committee (MPC), in its first meeting in the fiscal year 2026-27, decided to keep the policy rate unchanged at 11.5%.

“Out of the total principal repayments at $18 billion, some $10-11 billion would be rolled over or refinanced, while net repayable amount would be $7.5 billion,” Topline Research reported after attending SBP analysts briefing on the monetary policy.

Ahmad anticipated Pakistan’s external account would improve with increased inflows expected on account of workers’ remittances, export earnings and Roshan Digital Account (RDA) inflows.

The workers’ remittances are estimated at $44 billion in FY27 – up by $2.4 billion compared to record $41.6 billion received in FY26 despite the ongoing Iran-US war since late February 2026.

The export earnings are estimated to improve to $32 billion in FY27 from $30.13 billion recorded in FY26, according to SBP chief.

The inflows of RDA have improved to $300 million a month in recent months from around $200 million a month till a few months back. This is contributing to an improved external account situation, the SBP governor said.

“On the other hand, the import payments would soar by $4.5-5 billion to around $69 billion in FY27 compared to $64.5 billion in FY26.

“Despite the projected increased imports, the country’s foreign exchange reserves (held by SBP) would hit a new all time high at $20.20 billion by end of December 2026 and would continue to improve, going forward, in the second half (Jan-Jun) of FY27,” SBP governor maintained.