A World Bank report said that Pakistan is among the top 10 countries that have the largest external debt stock and has become eligible for the Debt Service Suspension Initiative (DSSI) in the aftermath of the COVID-19 pandemic.
Citing International Debt Statistics for 2022 released by the World Bank on Monday, The News International reported that there was a wide variation in the rate of external debt accumulating in individual DSSI-eligible countries, including the group’s largest borrowers.
The combined foreign debt stock of the 10 largest DSSI-eligible borrowers (Angola, Bangladesh, Ethiopia, Ghana, Kenya, Mongolia, Nigeria, Pakistan, Uzbekistan, and Zambia) stood at $509 billion at the end of 2020, up 12 percent from the previous year. Comparable figure at the end of 2019 and equal to 59 percent of the combined foreign debt obligations of all DSSI-eligible countries.
They accounted for 65 percent of the end-2020 private unguaranteed external debt of DSSI-eligible countries. The rate at which debt accumulated in different countries varied greatly.
The World Bank report said that for Pakistan, an 8 per cent increase in foreign debt shares reflects an influx of budgetary support from official bilateral and multilateral creditors and rollovers and new credit lines from commercial banks, The News International reported.
Net inflows from other private creditors rose 15 percent to $14 billion in 2020, but were highly concentrated and also reflected the rollover by commercial bank loans to Pakistan and the expansion of new credit in the context of the IMF programme.
FDI inflows into Pakistan fell marginally to $1.9 billion, down 5 per cent from 2019 levels, cushioned by continued investments in power generation and telecommunications from British and Chinese investors.
In South Asia, China’s debt has increased from $4.7 billion in 2011 to $36.3 billion in 2020, The News International reported.
(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)