PTI government paid off $10.4 billion foreign loan in single year 2020

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PTI government paid off $10.4 billion foreign loan in single year 2020

ISLAMABAD: Pakistan paid $10.4 billion on account of debt servicing of external public loans during FY20, according to an annual report on foreign economic assistance released by the Economic Affairs Division (EAD) on Friday.

The report states that the PTI government paid an amount of $10.4 billion during FY20 on account of debt servicing of external public loans, consisting of a principal payment of $8.5 billion and interest payment of $1.9 billion.

According to the details, Pakistan paid $704 million to China, $228 million Japan, $1,005 million ADB and $4,900 million commercial banks apart from other countries as well as lending organisations.

On the other hand, multilateral and bilateral development partners disbursed $6.5 billion in 2019-20 as compared to $4.1 billion last year, registering 59pc growth.

In addition, the government also raised $3.4 billion from foreign commercial sources to meet its external debt obligations and support the balance of payments. Out of the total disbursement of $10.7 billion, 97pc were loans and 3pc were grants.

The report mentioned that disbursements of $10.7 billion during 2019-20 were mainly under the projects and programs loans/grants from multilateral, bilateral development partners and financial institutions. The disbursement included $5,645m or 53pc of total disbursements were from the multilateral development partners mainly from Asian Development Bank (ADB), Islamic Development Bank (IDB), Asian Infrastructure Investment Bank (AIIB) and the World Bank (WB).

In addition, $3,373m or 32pc of total disbursements were from foreign commercial banks mainly to refinance maturing commercial debt of past periods.

An amount of $1,644m or 15pc of the disbursements were from bilateral development partners particularly Saudi Arabia, China and the UK.

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