Pakistan debt obligations stand at $29.7bn for next 11 months

November 01, 2024 (MLN): Pakistan's predetermined short-term net drains on foreign currency assets by the end of September stood at $30.41 billion for the next 12 months, of which $750.51 million was due within a month that already ended as of the release of central bank data.

The majority of these outflows consisted of principal payments valued at $26.53bn, while the interest amount stood at $3.88bn.

Of the total debt obligation, $750.51m was due within one month, while $6.83bn is payable between one and three months, and $22.83bn has a maturity of more than three months but up to one year.

Short-term net drains refer to contractual foreign currency obligations scheduled to come due during the 12 months ahead.

Maturity depends upon when the contract falls due irrespective of whether the expectation is that it will be rolled over.

“Net drains” refer to outflows of foreign currency net of inflows. Outflows are to be reported separately from inflows.

Outflows consist of scheduled amortizations of foreign currency obligations and associated interest payments during the coming year and scheduled deliveries of foreign currencies under forwards, futures, and swap contracts.

The data further showed that Pakistan's aggregate short and long positions in forwards and futures in foreign currencies vis-à-vis the domestic currency, including the forward leg of currency swaps, amounted to $3.06bn.

This amount included short positions worth $3.53bn while long positions amounted to $469m.

In addition, contingent liabilities — obligations that may arise from a future event or action — stood at $1.16bn.

These liabilities included $22.3m in collateral guarantees on debt due within a year, and $1.14bn in other contingent liabilities.

Meanwhile on the funding front, the official reserve assets of the country stood at $17.35bn by the end of September.

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