Pakistan Foreign Debt Repayments Soar to $4 Billion, Raising Concerns Over Repayment Pressure

Foreign loan repayment crossed $4 billion mark for first time in fiscal 2022-23, up 32.8% from previous year
High interest payments and short-term loans in power and energy sector drove repayment increase
Government loans repayment up 32% to $2.67 billion; state-owned enterprises loans repayment also up 32% to $2.11 billion
Interest payments almost doubled to $1.3 billion
Power sector loan repayment rose 27% to $679 million
Debt service to revenue ratio to cross 100% this fiscal year, raising concerns about repayment pressure and need to increase reserves
Interest rate risks high due to variable rate dominated debt portfolio, though external debt ratios still below threshold levels