Pakistan’s external debt continued to rise, reaching an all-time high of $ 122 billion by the end of June-2021, largely driven by new borrowing from bilateral and multilateral sources through public debt.

Analyst say the federal government received new loans last year to pay off the foreign debt on time and build up the country’s foreign exchange reserves.

With new external borrowing and other official foreign flows, the federal government will also be able to finance the current account deficit and the growing trade deficit.

According to the State Bank of Pakistan (SBP), the country’s external debt and Liabilities increased by 8% to $ 122.199 billion on June 30, 2021, up from $ 113,013 billion as of June 30, 2020, representing an increase of $ 9.186 billion.

Debt and Liabilities includes obligations of Paris Club, IMF loan, foreign exchange Liabilities , secured debt and unsecured debt of public sector enterprises, bank borrowings, non-residential deposits, private secured / unsecured debt and external debt. Exchange commitments and commitments to direct investors.

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