The Governor State Bank of Pakistan (SBP), Jameel Ahmed, told a National Assembly panel that Pakistan is set to repay foreign loans amounting to $26.2 billion during the current fiscal year.
Of this amount, $12.3 billion will be rolled over as deposits.
Governor Ahmed stated that the central bank has lifted all restrictions on imports and expressed optimism about the refinancing of $4 billion in commercial loans. In net terms, the total repayment of foreign loans will stand at $10 billion for the current fiscal year, with $1.4 billion already repaid, leaving $8.6 billion to be settled by FY2025. He provided this testimony before the NA Standing Committee on Finance and Revenue, chaired by Syed Naveed Qamar.
The SBP chief highlighted a significant reduction in the import of petrol, oil, and lubricant (POL) products, which decreased from $2.5 billion to $1.4 billion per month.
During the proceedings, a heated exchange occurred between opposition leader Omar Ayub of the PTI and PMLN MNA Azhar Kiani. Ayub alleged pressure on MNA Mobeen Arif to change loyalty, leading to a boycott of the panel proceedings by Ayub and other opposition members.
Governor SBP also mentioned that China’s $4 billion commercial loan would be refinanced, initially repaid and then made available again.
Additionally, Pakistan expects to receive $4.4 billion in foreign loans from the Asian Development Bank and the World Bank during the current fiscal year. He assured the committee that there is no pressure on external payments, suggesting that the value of the rupee is likely to remain stable.
He projected that inflation would be limited to 13.5 percent this fiscal year and 7 percent in the next fiscal year, with foreign exchange reserves potentially reaching $13 billion by the end of this fiscal year. From 2024 to 2028, foreign exchange reserves are expected to cover three months of imports, and efforts will be made to enhance financial stability and transparency.
He emphasized the need to boost GDP growth, which has been limited to 3.5 percent over the past decade, and to increase domestic exports from 10 percent to 15 percent. He also noted that no additional funds could be allocated for the Benazir Income Support Programme (BISP) this year.
Minister of State for Finance Ali Pervaiz Malik suggested that the Ministry of Planning could provide a more accurate poverty survey. The finance secretary added, “We have full support of the IMF on BISP. There are 1.5 million people living below 32 points.” He noted that 9.3 million beneficiaries are currently receiving payments, with another six million seeking inclusion.
