KARACHI: Jameel Ahmad said that Pakistan not exploring a bilateral debt restructure as Finance Minister Ishaq Dar had suggested.
No debt restructuring planned. No doubt. “We are’nt considering any such plan,” SBP Governor told analysts.
After releasing the FY2024 federal budget, FinMin Dar indicated the government considering restructuring its bilateral debt independent of the IMF evaluation.
According to Topline Securities, the SBP governor said most of the debt bilateral and multilateral. As they have paid substantial sums of commercial debt and will pay Eurobonds when due.
While, The governor stated $0.4 billion of the $3.6 billion external repayment due this month had been paid. $2.3 billion will be rolled over and $0.9 billion financed.
Moreover, The SBP estimates FY2024 debt obligations at $23 billion, evenly dispersed over four quarters.
The SBP will determine funding in the forthcoming monetary policy announcement based on IMF and other considerations.
The governor said IMF talks are ongoing and hoped the review will finish soon.
He projected Rs1 trillion to paid to the government from the SBP’s FY2024 profit after retaining a portion.
Due to policy-induced import limitations and liquidity (exports and remittances), the SBP forecasts the FY2023 CAD to be close to $3.5 billion (worst case $4 billion).
FY2024 CAD will be under $4 billion.
Market fundamentals and credit rating will determine when the government issues Eurobonds, according to Ahmad.
