How much foreign debt does Pakistan have to repay by March?

In the recent analysts' briefing on September 12, Pakistan's central bank Governor Jameel Ahmed disclosed that the country has to repay foreign debt amounting to $5.8 billion by March 2025. This repayment includes both the principal loans and interest payments. The additional repayment amounts to $14.1bn, out of which $8.3bn has been rolled over.

To factor in the payable amount, the governor highlighted that till September 12, the country had already settled up to $4bn, which includes a roll-over of $2.3bn and a net repayment of $1.7bn. From the external financing breakdown of $22bn, the additional debt repayment of $12.3bn is in rollovers.

Pakistan's external debt and liabilities soared to $130.5bn by June, up from $130.4bn by the end of December 2023. Its total external debt stayed at $78.2bn, up 1.6% year-on-year.

Pakistan is indebted to several international organizations and funds, including the Paris Club ($6.4bn), multilateral donors ($39.2bn), the IMF ($8.4bn), and international bonds ($6.8bn, including Eurobonds and Sukuks).

The International Monetary Fund (IMF) is expected to provide a safety net to the crisis-hit economy to help bridge the external side gap.

Pakistan's current account deficit stood at $162 million in July. This was the third consecutive deficit after three runs of positive figures from February to March. The balance, excluding the oil impact, was down for a third consecutive month to reach $1,041 million in July.

Foreign economic assistance inflows of about $436 million were received during July, whereas $11 million was paid out in grants.

Meanwhile, there has been a gradual buildup in reserves since March, with an import cover of more than two months (an import cover is the number of months of imports that could be paid for by Pakistan's reserves amount). The State Bank of Pakistan's efforts to improve foreign exchange market sentiment, supported by the narrowing of the local currency and open market spread, will unlock further multilateral and bilateral financing.

With the 37-month IMF-Extended Fund Facility program still in focus, the SBP has set a minimum target of $12 billion in reserves by the end of March, and a further improvement to $13 billion by June end.

Additionally, the IMF's Executive Board will consider Pakistan's new EFF for approval on September 25. The rollover and top-up of the bilateral deposits are still being worked on.