KARACHI: Pakistan’s external debt and liabilities declined in the third quarter of the current fiscal year (Q3FY21), data issued by the State Bank showed on Friday.

According to the SBP data, total external debt servicing reached at $10.633 billion at the end of nine months of this fiscal year (9MFY21).

The country’s total domestic debt and liabilities increased by Rs1.238 trillion to Rs25.552tr during the quarter ended on March 31, 2021.

However, debt and liabilities increased by Rs3.075tr to Rs25.552tr during the last 12 months (March 2020 to March 2021).

The country’s external debt and liabilities declined by$806m to $116.309bn during Q3. The amount was $117.115bn at end of December 2020. However, external debt and liabilities increased by $6.274bn in the last 12 months. Total external debt and liabilities reached $116.309bn by end of March 2021 from $110.035bn in March 2020.

The country paid $3.576bn as debt servicing for external debts and liabilities in Q3FY21. Debt servicing in each quarter remained almost same with slight increase in each quarter.

The total external debt servicing during the 9MFY21 reached at $10.633bn. Pakistan has to borrow on large scale to pay back the external debt and interests on it.

In FY20, the country paid a total $14.578bn as external debt servicing. The amount is 55 to 60 per cent of the country’s total export proceeds.

Published in Dawn, May 22nd, 2021