Pakistan''s external debt and liabilities posted $1.3 billion decline during first half of the current fiscal year, despite an increase in loan disbursements. The federal government successfully raised some $1 billion from the issuance of a 5-year Sukuk in the international market in November 2014.
While, the country also received three tranches amounting $1.607 billion from the International Monetary Fund (IMF) during first half of the current fiscal year under Extended Fund Facility (EFF) to build its depleting forex reserves. However, despite some increase in loan disbursements, overall stocks of foreign debt and liabilities are witnessing downward trend.
Bankers said that current decline in the stocks of debt and liabilities occurred due to payback of public debt and secondly, a notable fall in the external liabilities. "During the period under review, payback of government debt and massive repayments to IMF on account of different programmes mainly Standby Arrangement (SBA )- a programme obtained in November 2008 to avoid default - have resulted in sharp fall in the external debt and liabilities," they added.
According to State Bank of Pakistan (SBP), the stocks of external debt and liabilities have posted a 2 percent decline during July-December FY15.
With current fall, Pakistan''s total external debt and liabilities stood at $64.34 billion as on December 31, 2014 compared to $65.64 billion as on June 30, 2014, depicting a decline of $1.3 billion. The total stocks of debt and liabilities comprise public debt, foreign exchange liabilities, Public Sector Enterprises (PSE) guaranteed debt, PSE non-guaranteed debt, scheduled banks'' borrowing, private guaranteed and non-guaranteed debt and debt liabilities to direct investors.
This decrease in external debt and liabilities has mainly originated from public debt, which registered some $1.28 billion fall to reach $53.545 billion at the end of first half of this fiscal year. Public sector debt included long-term and short-term government debt, IMF debt and foreign exchange liabilities.
Detailed analysis revealed that although during the first half of the current fiscal year, Pakistan paid back some $874 million to IMF on account of different programmes, its debt portfolio has surged by some $548 million mainly due to fresh disbursement under EFF programme.
Similarly, with $316 million surge, Public Sector Enterprises (PSEs) debt reached $2.425 billion in December 2014, up from $2.109 billion in June 2014. The scheduled banks borrowing mounted to $2.252 billion as on December 31, 2014 as against $1.989 billion as on June 30, 2014, depicting an increase of $263 million. In addition, during the period under review, private sector debt increased to $3.064 billion. Debt liabilities to direct investors witnessed downward trend and fell by $693 million to $3.053 billion in December 2014.
External debt, liabilities down by $1.3 billion in first half fiscal year 2015 | Business Recorder
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