Over the past 19 years, Pakistan has disbursed a significant $5.66 billion in interest payments on its international Euro and Sukuk bonds.
During the same period, the country has also repaid $7.50 billion in principal amounts. This financial data was shared by officials from the State Bank and the Ministry of Finance during a briefing to the Senate Standing Committee on Economic Affairs.
Currently, Pakistan has an outstanding debt of $6.8 billion that needs to be cleared by June 2024. The most recent international bond issuance by Pakistan occurred in January 2022, following a $2.5 billion issuance in April 2021. These bonds carried high-interest rates, ranging between 5.75% and 8.75%.
Officials noted that the US Federal Reserve might lower interest rates in the near future, with similar trends anticipated in the European, British, and Canadian markets.
While there is a possibility of Pakistan’s policy rate being reduced, the Ministry of Finance has stated that no new bonds will be issued until there is a further decline in global interest rates.
