Next week, a further $1 billion is due.
ISLAMABAD: In the midst of the government's difficult battle to prevent sovereign default with very little gross foreign exchange reserves left behind, Pakistan is expected to make debt repayments of over $1 billion to two foreign commercial banks early next month. Shahbaz Rana December 29, 2022 According to The Express Tribune's reporting on ministry of finance sources, the government will repay two loans to Gulf banks in the first week of January. In the hopes that the lenders would further postpone payments when the loans reached maturity, these loans had been secured for a year. However, poor credit ratings warning of a significant chance of default prevented foreign lenders from honouring their obligations to Pakistan. Two separate repayments of $600 million and $415 million will be made to two Dubai-based business banks. These repayments are anticipated to significantly reduce the already vulnerable foreign exchange reserves, which are now valued at about $6 billion unti...