May 12, 2020 (MLN): Pakistan’s total external debt and liabilities by the end of 1QCY20 stood at $109.94 billion, signifying a growth of 4% YoY, as during Jan-Mar CY19 it was $105.9 billion.
While in the previous quarter, the total external debt had stood at $110.7 billion, indicating a marginal decline QoQ.
According to the latest data issued quarterly by State Bank of Pakistan (SBP), 79% of the entire debt can be attributed to Public External Debt, the combination of Government’s Long Term and Short-Term External Debt, IMF loans to Central Bank, and Foreign Exchange Liabilities. The Government external debt which includes both long term and short-term external debt stood at $70 billion, up by 2% YoY, IMF loans to Central Bank and Federal government standing at $5 billion and $1.42 billion respectively, while Foreign exchange liabilities outstanding recorded at $9.87 billion during the quarter under review.
Within the public external debt, the Long-term debt stood at $67.37 billion which is the same as recorded in the same quarter last year while it declined marginally compared to figures recorded in previous quarter. Short term debt (less than one year) increased by a whopping 2.4x to $2.689 billion compared to the same quarter of CY19. While it declined by 4% compared to last quarter in which it recorded at $ 5.765 billion.
The rest of the amount has been a result of Government borrowing from Public Sector Enterprises, Banks, and Private Sector.
Notably, short term Bank Borrowing declined by 13% YoY during the quarter to $2.85 billion while it increased by 3% QoQ. Breaking it down into Public and Private, Private Sector holds a major piece in the short-term Bank Borrowing, around $ 2.66 billion.
Long-term Bank borrowing recorded a decline of 12% QoQ to $18 million, while when it compared with the same quarter of 2019 it stood at $25 million, depicting a decline of 26%.
Outstanding external debt of Public sector enterprises (PSEs) during Jan- Mar CY20 stood at $3.497 billion, the figure was 7% lower when it compared with the last quarter, while 2% higher than the figures recorded in the Jan-Mar 2019.
Private sector external debt, which attributed to 10% of the total external debt amounted to $11.16 billion by the end of the quarter, depicting an increase of 2% QoQ. In the corresponding quarter last year, it stood at $10.25 billion.
Additional data posted showed the GDP (Current Market Price) to have decreased from $274 billion in the corresponding quarter last year to $261.92 billion, showing a decrease of 4% YoY, whereas, compared to the previous quarter it shrank by 7% as it stood at $281.4 billion during Oct-Dec 2019.
Official liquid reserves increased from $10.879 billion in Jan-Mar 2019 to USD 11.74 billion.
External debt and liabilities as a percentage of GDP increased from 38.7% by the end of March 2019 to 42% at the end of March 2020.
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