Pakistan in top 10 list of countries with largest external debt stocks

Pakistan in top 10 list of countries with largest external debt stocks
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Pakistan falls on the list of the top 10 countries that possess the largest external debt stocks.

It makes them eligible for the Debt Service Suspension Initiative (DSSI) in the aftermath of the COVID-19 pandemic. A report from the World Bank states.

Citing International Debt Statistics in 2022, released by the World Bank, The News International reports a wide divergence in the rate at which external debt accumulated in individual DSSI-eligible countries, including the group’s largest borrowers.

The combined external debt stock of these 10 largest DSSI-eligible borrowers including Angola, Bangladesh, Ethiopia, Ghana, Kenya, Mongolia, Nigeria, Pakistan, Uzbekistan, and Zambia makes up 509 billion dollars.

It is 12 per cent higher than the comparable figure at end-2019.

The World Bank report on Pakistan also states that the 8 per cent increase in external debt stocks show the inflow of budgetary support from official bilateral and multilateral creditors.

This is apart from the rollover and new credit lines from commercial banks.

Moreover, net inflows from other private creditors rose 15 per cent in 2020 to 14 billion dollars.

But these were highly concentrated and reflect rollovers and extension of new credits by commercial bank loans to Pakistan when it comes to IMF programs.

As far as FDI inflows to Pakistan are concerned, these fell moderately to 1.9 billion dollars which are 5 per cent below the 2019 level.

As per The News International reports, in South Asia, debt to China has risen, from 4.7 billion dollars in 2011 to 36.3 billion dollars in 2020.

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