Pakistan is poised to repay $24.8 billion in external debt during the current fiscal year, according to the latest data from the State Bank of Pakistan (SBP). This includes $21.2 billion in principal repayments and $3.6 billion in interest payments.
The SBP’s data reveals that Pakistan will need to make payments totaling $4.98 billion in July, $2 billion each in August and September, and $17.8 billion from October through June 2025. This total is slightly lower than the $26.2 billion previously reported by SBP Governor Jameel Ahmad.
Governor Ahmad noted that out of the $22 billion required for principal repayments, $16.3 billion is anticipated to be rolled over, leaving $10 billion for repayment. With $1.1 billion already repaid in July, net repayments for the first 11 months of this fiscal year amount to $9 billion.
The SBP forecasts that its foreign exchange reserves will rise to $13 billion by the end of FY25, up from the current $9.1 billion, with improved reserve quality compared to previous years.
In July, Pakistan secured a $7 billion bailout from the IMF to stabilize its economy, and talks with Saudi Arabia, the UAE, and China are ongoing to meet financing needs under the IMF program.
The central bank has kept the key interest rate at 19.5% and expects inflation to range between 11.5% and 13.5%.
In other significant news, global rating agency S&P has affirmed Pakistan’s long-term sovereign rating at ‘CCC+’, citing the country’s reliance on external aid amidst a prolonged economic crisis. Fitch Ratings has also upgraded Pakistan’s long-term foreign currency issuer default rating to ‘CCC+’ due to increased external funding under the new IMF agreement.
