Country’s total external debt servicing soars to $3.9 billion

February 17, 2020 (MLN):  The country’s total external debt servicing on outstanding loans soared to $3.9 billion in the 2QFY20 from $3 billion recorded in the preceding quarter of FY20, showing an increase of 27% QoQ.

As per quarterly data released by the State Bank of Pakistan (SBP) today, the government paid $3 billion as principal amount on external debt and liabilities whereas the remaining $849 million was paid as interest.

Going by the data, debt servicing on external public debt rose by 44% QoQ to $2.49 billion while as interest, it surged by 9% QoQ to $629 million.

Furthermore, Pakistan paid $ 1.8 billion and $ 166 million principal amount on government external debt and on IMF loans respectively. Whereas, $517 million and $41 million were paid as interest payments on government’s external loan and on loan from IMF.

Meanwhile, it is pertinent to mention that within government externa debt, the major chunk of $ 1 billion (out of $1.8 billion) was paid as principal amount on Euro/Sukuk global bonds.

Total debt servicing on foreign exchange liabilities as principal payment amounted t0 $500 million at the end of December 2019 while interest payments on these liabilities stood at $71 million, depicting a rise of 46% QoQ.

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