Islamabad [Pakistan], December 8 (ANI): The World Bank has estimated Pakistan's total external debt stocks stood at USD 130.433 billion by end-2021 in comparison to USD 115.695 by the end-2020, Business Recorder, reported.
In its latest report "International Debt Report 2022, Updated International Debt Statistics," the World Bank said that the total external debt stocks were at USD 130.433 billion by 2021, which includes the use of IMF credit of USD 10.841 billion against USD 8.902 billion in 2020.
In addition, the long-term external debt of Pakistan stood at USD 110.610 billion in 2021 in comparison to USD 99.563 billion in 2020. Meanwhile, short-term external debt reached 8.983 billion in 2021 in comparison to USD 7.230 billion in 2020, as per the Business Recorder report.
As per the data, the external debt stocks to export was 360 per cent in 2021 while it stood at 417 per cent in 2020. In 2021, external debt stocks to gross national income (GNI) was 38 per cent in 2021 in comparison to 39 per cent in 2020. According to the data, debt service to exports was 34 per cent in 2021 while it remained at 36 per cent in 2020.
In addition, short-term to external debt stocks was seven per cent in 2021 in comparison to six per cent in 2020. Multilateral to external debt stocks stood at 27 per cent in 2021 compared to 29 per cent in 2020 while gross national income (GNI) was 341,730 in 2021 in comparison to 294,847 in 2020, as per the news report.
In the report, the World Bank stressed that the external debt service payments on the publicly guaranteed debt by the world's poorest countries are expected to increase by 35 per cent from 2021 to more than USD 62 billion in 2022, as per the Business Recorder news report. Payments due for 2023 and 2024 will likely remain increased due to high-interest rates, maturing principal, and the compounding of interest on debt service suspension initiative deferrals.
The increased liquidity pressures in poor nations go hand in hand with solvency challenges which result in debt overhang. The World Bank noted that the debt overhang is unsustainable for dozens of nations. According to the report, the deferral process needs a detailed reconciliation between debtor and creditor records and has been administratively costly, as per the news report.
Meanwhile, Pakistan on December 7 engaged three International Monetary Fund (IMF) shareholders for support in seeking USD 7 billion economic bailout package. Pakistan's Finance Minister Ishaq Dar and his team held meetings with Islamabad-based top diplomats of the US, China, and the UK, Dawn reported.
Ishaq Dar told the diplomats about the economic challenges faced by Pakistan, majorly caused by exogenous factors and difficulties in dealing with IMF staff. As per the Dawn report, assured the diplomats and the markets that Pakistan was committed to the IMF programme despite all the difficulties. (ANI)