ISLAMABAD (PEN) : Pakistan is preparing to repay $24.8 billion in external debt during the current fiscal year, as detailed by data from the State Bank of Pakistan (SBP). This figure includes $21.2 billion in principal repayments and $3.6 billion in interest payments.
According to the SBP, the repayment schedule is as follows: $4.98 billion in July, $2 billion each in August and September, and $17.8 billion from October through June 2025. This total is slightly lower than the $26.2 billion figure previously mentioned by SBP Governor Jameel Ahmad.
Governor Ahmad noted that of the $22 billion needed for principal repayments, $16.3 billion is expected to be rolled over, leaving $10 billion to be repaid. After repaying $1.1 billion in July, the net repayments for the first 11 months of the fiscal year are projected to be $9 billion.
The SBP forecasts that its foreign exchange reserves will rise to $13 billion by the end of FY25, up from the current $9.1 billion, with improved reserve quality compared to previous years.
In July, Pakistan secured a $7 billion bailout from the IMF to help stabilize the economy. The country is also in talks with Saudi Arabia, the UAE, and China to meet its financing needs under the IMF program.
The central bank has kept the key interest rate at 19.5%, expecting inflation to range between 11.5% and 13.5%.
In a recent update, global rating agency S&P reaffirmed Pakistan’s long-term sovereign rating at ‘CCC+’, reflecting the country’s dependence on external aid amid ongoing economic challenges. Fitch Ratings has similarly upgraded Pakistan’s long-term foreign currency issuer default rating to ‘CCC+’, citing the enhanced external funding from the new IMF agreement.
