Around $11b debt to be rolled over in 2023-24, says SBP governor

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State Bank of Pakistan (SBP) Governor Jameel Ahmad stated that Pakistan expects to roll over about half of its maturing debt in the fiscal year (FY) 2023–2024, according to Bloomberg.

The governor of the central bank stated that around $11.3 billion of the $24.5 billion in debt that is due to mature in FY24 will be rolled over during a briefing for analysts on Monday.

The remaining funding requirement will be more than covered by inflows, he continued.

After receiving a $3 billion bailout from the International Monetary Fund (IMF) last month, Pakistan’s financial condition is now improving.

This made it possible for nations like Saudi Arabia and the United Arab Emirates to provide additional financial support worth billions of dollars. It is important to note that China and the Gulf States have decided to postpone making payments on Pakistan’s previous loans.

Pakistan’s foreign exchange reserves have nearly risen to over $8 billion since the IMF loan.

The nation is currently discussing commercial borrowing, and at the end of the fiscal year, it plans to sell dollar bonds and sukuk debt. SBP expects further drops in dollar bond yields and a rise in foreign exchange reserves to $10 billion by June 2024.