Overview
- The State Bank of Pakistan reported Monday that external debt servicing for fiscal 2026–27 is projected at about $21.5 billion, down from $26.5 billion in the prior year.
- Governor Jameel Ahmad said the FY27 total breaks down to roughly $18 billion of principal and $3.5 billion of interest with about $6 billion already settled or rolled over in July.
- Because roughly $10–11 billion of principal is expected to be refinanced, the SBP now sees net external cash outflows of about $7–7.5 billion for FY27, lower than the roughly $11 billion paid in FY26.
- The central bank has cut forward liabilities from about $5.8 billion to near $900 million by end-June 2026, and international bond yields and recent issuance costs have fallen to roughly 7–8 percent.
- SBP projects stronger external inflows—workers’ remittances around $44 billion, exports near $32 billion—and expects its FX reserves to reach about $20.2 billion by end-December 2026, which would ease near-term pressure on import financing and the exchange rate.