ISLAMABAD, June 12: Pakistan obtained $10.5 billion external debt in the last six years and repaid about $27 billion but the overall debt stock dropped by only $1.24 billion, official statistics suggest. In 1999-2000, Pakistan obtained $2.5 billion, followed by $1.4 billion in 2000-01, $1.6 billion in 2001-02, $2.3 billion in 2002-03, $1.5 billion in 2003-04 and $1.2 billion in 2004-05.

When compared with 1999-2000, the total external debt and liabilities have dropped by $1.24 - down from $37.86 billion to $36.62 billion. Interestingly, this small decline in the stock of foreign debt and liabilities took place despite Pakistan’s repaying or rolling over a total of $40.4 billion debt.

The official data suggest that Pakistan made an actual repayment of $26.979 billion since 1999-2000 and rolled over a total of $13.427 billion. Pakistan paid $3.756 billion and rolled over $4.081 billion. In 2000-01, it paid $5.101 billion on account of debt servicing and $2.795 billion worth of payments were rolled over.

Pakistan’s total external debt and liabilities stock has increased by $1.36 billion to $36.62 billion in the first nine months of the current fiscal year compared with $35.26 billion of last year.

According to official data, the stock of total external debt (excluding liabilities) has increased by $1.47 billion and stood at $34.777 billion at the end of March 2005 compared with $33.307 billion last year.

The statistics suggested that external debt and liabilities during July-March 2004-05 amounted to $36.62 billion, showing an increase of 3.9 per cent over the level of $35.258 billion recorded by end-June 2004.

“In absolute dollar terms, the total stock of external debt and liabilities increased by $1.365 billion,” confirmed the Economic Survey. The rise was a result of valuation effect of $628 billion and the remaining $737 or 54 per cent was due to net inflow effect.

In 2001-02, Pakistan actually repaid $6.327 billion and rolled over $2.243 billion. In 2002-03, the government repaid $4.349 billion and rolled over $1.908 billion. In 2003-04, Pakistan paid $5.274 billion and rolled over $1.3 billion. Similarly, it paid $2.172 billion in foreign debt servicing and rolled over $1.1 billion in the first nine months of 2004-05.

However, as percentage of GDP, external debt and liabilities stood at 51.7 per cent by end-June 2000 and declined to 33.1 per cent by end-March 2005.

External debt and liabilities as percentage of foreign exchange earnings was 297.3 per cent in 1999-2000 and declined to 145.9 per cent by end-March 2005.