Dawn
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05:09 Jul 31, 2025
KARACHI: Pakistan faces another challenging year of external debt servicing in FY26, requiring significant rollovers to manage repayments totalling $25.9 billion, including $22bn in principal and $4bn in interest. According to a report by Topline Securities, the country will need to arrange a net financing of $10bn, comprising $6bn in principal and $4bn in interest, after accounting for expected rollovers and refinancing. In a briefing to analysts and researchers after announcing a status quo in the monetary policy on Wednesday, State Bank Governor Jameel Ahmed said foreign exchange reserves are projected to reach $15.5bn by December 2025 and $17.5bn by June 2026. Any proceeds from international bond issuances, such as Eurobonds or Sukuk, would be over and above this target. The governor added that Pakistan is due to repay $1.8bn in FY26 on account of two maturing Eurobonds — one of $800 million and the other of $1bn. Islamabad must arrange $10bn net external financing in FY26; SBP says total repayments reach...