Pakistan’s total debt servicing declines 30% QoQ to $2.7 billion

May 13, 2020 (MLN): Pakistan’s total debt servicing (principal and interest) by the government during third quarter of current fiscal year reduced to a total of $2.73 billion from $3.9 billion in the 2QFY20, showing a decline of 30% QoQ.

As per quarterly data released by the State Bank of Pakistan (SBP) yesterday, Principal Amount payments during the quarter totaled at $1.936 billion, major chunk of which ($1.38 billion) comes from the Public debt particularly concentrated under the Government Debt head. Interest payable on the principal of public debt totaled at $590 million. While the interest paid on principal of total debt totaled at $792 million.

Furthermore, Pakistan paid $ 1.173 billion and $207 million principal amount on government debt and on IMF loans respectively. Whereas, $458 million and $37 million were paid as interest payments on government’s loan and on loan from IMF.

Debt servicing of the Public Sectors Enterprises (PSEs) during the quarter reached $299 million. Under this head country paid $242 million as principal payment and $57 million paid as interest.

Furthermore, the total debt servicing of private sector declined 19% QoQ to $439 million in which $312 million was retired as principal amount while $127 million were paid as Interest.

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