Pakistan will need more than $ 10 billion annually to pay off its external loans. As per the sources, Federal Economic Minister Omar Ayub and Federal Finance Minister Shaukat Taryn met with their ministry officials to review the debt situation.
The Ministry of Economy told the Ministry of Finance that Pakistan will require roughly $ 10 billion annually to repay foreign loans, in addition to those taken in the form of deposits from the UAE and China.
It should be noted that the UAE has provided Pakistan $ 2 billion, while China has provided 4 billion, and their payment is likely to be deferred.
According to sources, the meeting of the two ministries suggested that the government should get International Monetary Fund, the World Bank and the Asian Development Bank in its favour. External Payments this fiscal year will reach about $12 billion, compared with 14.4 billion in debt received, Facing with a $2.5 billion deficit. While Obtaining a loan from the World Bank for $1.5 billion has become difficult due to the failure to meet certain conditions, including high electricity prices.
In this regard, Finance Minister Shaukat Tareen met with representatives of the World Bank. With declining exports and foreign direct investment, there is no immediate solution to the problem other than increased borrowing. From July to March of this fiscal year, the government raised $ 10.4 billion, including $ 2.5 billion in Eurobonds.
Contrary to the World Bank’s estimate of $2.3 billion per year, only 893.8 million were received. In the last quarter of the current fiscal year (April-June), Pakistan must pay $3.8 billion, and this will put pressure on foreign exchange reserves.
According to sources, Chinese investment in the form of special economic zones has yet to arrive as the government has yet to finalize the concession package. China also does not want to sign the Industrial Framework Agreement.
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