Canada Global (Web News) Pakistan will have to pay back roughly $8.3 billion in the form of external debt payments over the upcoming three months (Jan-March) of the current fiscal year despite its declining foreign exchange reserves.
Out of the $8.3 billion in outstanding debt servicing, Pakistan will require a rollover from the UAE of $2 billion over the following three months of the current fiscal year.
The repayment of a $700 million commercial loan to Chinese banks is expected to be refinanced, according to Pakistani authorities. The servicing of the debt, which will cost $5.035 billion over the following three months and $426.88 million in interest payments, has boosted the total amount due to $5.462 billion.
The government will be required to repay a total of $600 million in commercial loans in January 2023, $400 million of which will go to a bank in Dubai.
Islamabad expects to receive a total of $2 billion in debt servicing payments from the UAE as a rollover. Pakistan will request a one-year extension from the UAE authorities.
The country also expects re-financing from China in the amount of $700 million, but first it must repay Chinese banks.
Islamabad would have to repay over $2 billion in commercial loans over the next three months, making this the largest remaining liability.