Karachi June 3 2024: Pakistan is set to repay USD 10.2 billion in debt during June and July 2024, marking the highest two-month repayment in the country’s history, according to data from the State Bank of Pakistan (SBP).
The previous record for a two-month period was USD 8.9 billion in November and December 2022. These repayments led to a USD 5.9 billion drop in central bank reserves over three months, ending in January 2023.
Of the upcoming USD 10.2 billion repayment, USD 9.2 billion is for principal payments and USD 918 million is for interest.
The SBP’s total foreign currency liabilities due within 12 months from April 2024 have now risen to USD 27.5 billion, the second highest in the country’s history, following the maturities in January 2024.
“Our reserves have risen to around US$8 billion despite heavy debt repayments and will so cross USD 9 billion mark; the current account deficit has narrowed quite significantly, and as a result, the PKR is stable. Uncertainty has also reduced. Pakistan’s bilateral and multilateral partners are continuing their support.” says Central Bank governor last month while addressing to ICMA convocation.
Governor, while citing Pakistan’s economic improvements, shared that progress was made possible because of a firm commitment of the government and the State Bank of Pakistan to effectively respond to the macroeconomic challenges. He shared that unpopular yet necessary measures had to be taken. The State Bank raised the policy rate to 22 percent, in order to reduce pressure on inflation and the
current account.
