KARACHI: Pakistan paid $3.593 billion in external debt servicing during the first quarter of this fiscal year, reported the State Bank of Pakistan (SBP).

The debt servicing has become the biggest problem for the government as it has to borrow continuously to pay back the previous debts. In FY20, the country had to pay $14.578bn in debt servicing.

The foreign exchange reserves of the State Bank have remained below $14bn since FY18 and are still hovering around $13bn.

Out of the total payment of $3.593bn, the country paid $2.934bn in the principal amount while $659 million was paid as interest.

In FY20, the principal amount was $11.345bn while the interest was $3.233bn.

Published in Dawn, January 27th, 2021

Opinion

Editorial

New Covid danger
30 Nov 2021

New Covid danger

The government’s messaging around the coronavirus and the potential threat of Omicron must be reactivated.
Updated 30 Nov 2021

Saudi conditions

DECADES of fiscal profligacy have trapped the country in a situation where it not only has to borrow more money to...
30 Nov 2021

Mental health concerns

THE economic and psychological effects of Covid-19, combined with the issues of joblessness and inflation, have had ...
Land misuse
Updated 29 Nov 2021

Land misuse

THE contrast could not be more stark, and elite capture no better illustrated. On the one hand are the middle-class...
29 Nov 2021

Act of altruism

DECEASED organ donation needs to become part of the national discourse. To that end, our lawmakers must adopt a far...
29 Nov 2021

Animal neglect

THE callousness shown by our state and society towards humanity is often such that it comes as no surprise that less...