Pakistan to Receive $16 Billion Debt Roll-Over This Fiscal Year, Says SBP Governor
On Wednesday, SBP Governor Jameel Ahmad announced that Pakistan’s total debt for FY25 is $26.2 billion. Friendly nations will roll over more than $16 billion, leaving $10 billion to be repaid by June 30. Last month, the central bank paid $1.5 billion, with $8.5 billion still due for the fiscal year. In FY24, the SBP paid $12.5 billion, while external debt reached $130 billion.
At a National Assembly session, Ahmad warned that budgetary measures might raise inflation but was hopeful about manageable external debt due to rollovers.
Secretary Finance Imdad Ullah Bosal added that Pakistan will receive a $4.4 billion IMF tranche following a Chinese loan rollover and has secured extensions from Saudi Arabia and the UAE. Ahmad projected that inflation could rise to 13.5% due to budget and energy costs but should stabilize between 5-7% next fiscal year. Foreign exchange reserves could reach $13 billion by year-end.
The governor outlined a five-year plan to stabilize the economy, including boosting exports by 10-15%, closing the gap between market and interbank exchange rates, and curbing smuggling. He remains optimistic that interest rates will eventually drop as the economy stabilizes.
