KARACHI: Pakistan’s total external debt and liabilities increased 7.1 percent to $68.5 billion by December 31, 2015, the central bank said.
The State Bank of Pakistan (SBP) data showed that outstanding stocks amounted to $64 billion a year ago.
The increase in stock was attributed to commercial loans and Euro bonds. Disbursement from the International Monetary Fund (IMF) stood at $1.42 billion during the year.
Analysts attributed the rise in external debt to loans from international financial institutions (IFIs), which are the major sources of financial and technical support for developing countries and play a critical role to support infrastructure development and institutional reforms. “During the recent years, the ADB and World Bank are helping Pakistan’s power sector,” said a report released by SBP.
Public debt increased 6.34 percent to $57 billion by the end of last year as compared to $53.6 billion a year ago
The government debt – both long term and short term – grew to $48.37 billion as compared with $46.84 billion. The long-term debts included Paris Club, multilateral, Euro/Sukuk global bonds. The short-term debts of the government included local currency securities and commercial loans and credits.
The debt burden from IMF also increased to $4.989 billion for the period as against $3.57 billion.
The foreign loan to public sector enterprises rose to $2.73 billion from $2.249 billion.
According to the SBP, the country’s external debt servicing came down to $503 million during October – December 2015 as against $795 million in the period of July- September 2015.
The central bank attributed the fall in debt services to decline in repayment to the IMF. The external debt repayments are expected to increase in ongoing half of the current fiscal year, mainly due to maturity of 10-year Eurobond issued in FY06, the SBP said.