External debt servicing rose to an alarmingly high level as it reached close to $7 billion in FY14 which is almost 80 per cent of the current reserves of the State Bank while the reserves are declining on week on week basis.
A recently produced data of the State Bank showed the country paid $6.820bn as debt servicing in FY14, including $5.910bn as principal amount and $915m as interest.
The government mired in floods and political crisis, may face another serious turmoil by the end of this fiscal year if IMF and other donors did not release the promised loans.
The gravity of the situation is visible in the wake of increasing trade gap, with no foreign inflows, no release of instalments from IMF and no interest of foreign investors in the country.
