Pakistan’s External Debt & Liabilities outstanding reach $112.8 billion in FY20

August 27, 2020 (MLN): Pakistan’s total external debt and liabilities by the end of FY20 stood at $112.85 billion, signifying a growth of 6% YoY, as during FY19 it was $106.35 billion.

According to the latest data issued by State Bank of Pakistan (SBP), 78% 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 $70.314 billion during FY20, up by 4% YoY, IMF loans to Central Bank and Federal government standing at $4.85 billion and $2.83 billion respectively, while Foreign exchange liabilities outstanding recorded at $9.89 billion during the fiscal year under review.

Within the public external debt, the Long-term debt stood at $68.77 billion, up by 3% YoY compared to FY19. Short term debt (less than one year) increased by 22% YoY to $1.54 billion compared to figure recorded at the end of June 2019.

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 12% YoY by the end of June 2020 to $2.76 billion. 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 at $16 million, while when it compared with FY19, it stood at $25 million, depicting a decline of 36% YoY.

Outstanding external debt of Public sector enterprises (PSEs) during FY20 stood at $4.9 billion, the figure was 27% higher when it compared with FY19.

Private sector external debt, which attributed to 10% of the total external debt amounted to $11 billion by the end of the June 2020, depicting an increase of 5% YoY as in FY19 it totaled at 10.49 billion.

Additional data posted showed the GDP (Current Market Price) to have increased from $232.9 billion in FY19 to $248.13 billion, showing a jump of 7% YoY.

Official liquid reserves increased from $7.769 billion in FY19 to $12.55 billion, marking an increase of 62% YoY.

External debt and liabilities as a percentage of GDP declined negligibly from 45.7% by the end of June 2019 to 45.5% at the end of June 2020.

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