Pakistan paid $1.464 billion on external debt-servicing


Islamabad : Pakistan paid $1.464 billion on external debt-servicing during the first half of the current fiscal year, 2008-09, of which $853 million were used for retiring principal amount while $511 million were spent on interest, according to a news report.

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Besides, in July-December 2007 the government retired public and publicly guaranteed external liabilities worth $1.023 billion, of which principal loans were $599 million and interest was $413 million, English daily The News reported.

These payments were made in two installments, the first during July-September 2007 when the government paid $647 million and it retired $717 million in second installment during October-December 2007.

The State Bank of Pakistan (SBP) s latest statistics showed that $990 million were used for retirement of medium and long-term loans (more than one year period).

The break-up showed that $302 million were returned to Paris Club and $288 million were paid back to multilateral whereas $40 million were paid to other bilateral foreign lenders.

Moreover $64 million paid for Eurobonds & Sandik Metal whereas $38 million were paid for military payments and $27 million were consumed for commercial loans or credits.

For the short-term loans (less than one year) $28 million were paid back to Islamic Development Bank (IDB). For repayment of private and non-guaranteed loans $255 million were incurred. These all loans were for medium and long term (more than one year). $87 million were paid back to International Monetary Fund (IMF) in which $3 million were used for interest payment.