Over the past 19 years, Pakistan has shouldered a significant financial burden related to international bonds, marked by substantial interest payments and principal repayments.
During this period, the country has paid $5.66 billion in interest on Euro and Sukuk bonds and repaid $7.50 billion in principal.
This was revealed in a briefing to the Senate Standing Committee on Economic Affairs by officials from the State Bank and the Ministry of Finance.
Currently, Pakistan owes $6.8 billion, due by June 2024. The latest international bond was issued in January 2022, following a $2.5 billion bond in April 2021, with interest rates between 5.75% and 8.75%.
Officials anticipate a potential reduction in global interest rates, including by the US Federal Reserve, which may affect European, British, and Canadian markets.
While there is a possibility of a decrease in Pakistan’s policy rate, the Ministry of Finance has indicated that no new bonds will be issued until global rates decline further.
