Pakistan's total debt servicing mounts to $14.58 billion in FY20

August 27, 2020 (MLN): Pakistan’s total debt servicing (principal and interest) by the government in FY20 increased to a total of $14.578 billion from $11.589 billion in the FY19, showing a growth of 26% YoY.

As per the data released by the State Bank of Pakistan (SBP) yesterday, Principal Amount payments during FY20 totaled at $11.345 billion, major chunk of which ($9.543 billion) comes from the Public debt particularly concentrated under the Government Debt head. Interest payable on the principal of public debt totaled at $2.352 billion. While the interest paid on principal of total debt totaled at $3.233 billion.

Furthermore, during FY20, Pakistan paid $8.299 billion and $744 million principal amount on government debt and on IMF loans respectively. Whereas, $1.872 billion and $160 million were paid as interest payments on government’s loan and on loan from IMF. Moreover, to meet Foreign Exchange Liabilities, the government paid sum of $820 million, of which $500 paid as principal and $320 million retired as interest payments.

Debt servicing of the Public Sectors Enterprises (PSEs) during FY20 reached $587 million, up by 66% YoY. Under this head country paid $449 million as principal payment and $138 million paid as interest.

Furthermore, the total debt servicing of private sector increased 32% YoY to $2 billion in which $1.343 billion was retired as principal amount while $662 million were paid as Interest.

Copyright Mettis Link News