State Bank of Pakistan (SBP) Governor Jameel Ahmad revealed that Pakistan foresees nearly 50% of its maturing debt in fiscal year 2023-24 to be rolled over.
The country is witnessing improvements in its financial situation following a $3 billion bailout from the International Monetary Fund (IMF) last month. As a result, Pakistan received additional financing support from countries like Saudi Arabia and the United Arab Emirates. Moreover, Gulf countries and China have agreed to extend debt payments on earlier loans to Pakistan.
$11.3 Billion Debt to be Rolled Over
Governor Jameel Ahmad, in an analyst briefing, disclosed that out of the $24.5 billion debt maturing in FY24, approximately $11.3 billion will be rolled over. The inflows are expected to cover the remaining financing requirement comfortably.
Strengthening Forex Reserves
Thanks to the IMF loan, Pakistan’s foreign exchange reserves have almost doubled to surpass $8 billion. The country is currently engaged in discussions about commercial borrowing and plans to issue dollar bonds and sukuk debt by the end of the fiscal year.
The State Bank of Pakistan anticipates a further decline in dollar bond yields and aims to push forex reserves above $10 billion by June 2024.
