Photonews Logo Photonews logo
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Azad Jammu Kashmir
    • Balochistan
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
    Gen V Season 2 trailer
    Videos

    Gen V Season 2 Trailer Cast, Plot, Premiere Details

    July 26, 2025 3 Min Read
    IShowSpeed Daniel La Belle race
    Videos

    IShowSpeed Beats Daniel La Belle in 40-Meter Race, Hits 41M Subscribers

    June 24, 2025 2 Min Read
    Cardi B new single Outside
    Videos

    Cardi B’s ‘Outside’ Single Sparks Buzz Over Offset and Stefon Diggs

    June 20, 2025 2 Min Read
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Reading: How Much Interest Has Pakistan Paid on Foreign Loans in Five Years?
PhotoNews Pakistan PhotoNews Pakistan
Font ResizerAa
Search
  • Home
  • Pakistan
    • Punjab
    • Sindh
    • Khyber Pakhtunkhwa
    • Balochistan
    • Azad Jammu Kashmir
    • Gilgit – Baltistan
  • World
  • Business
  • Entertainment
  • Videos
  • Sports
  • Technology
  • Offbeat
  • Blog
  • Contact
Have an existing account? Sign In
Follow US
© 2022 Photonews. All Rights Reserved.
Pakistan circular debt financing
PhotoNews Pakistan > Business > How Much Interest Has Pakistan Paid on Foreign Loans in Five Years?
Business

How Much Interest Has Pakistan Paid on Foreign Loans in Five Years?

Web Desk
By Web Desk Published September 19, 2024 3 Min Read
Share
An Illustration Depicting the Debt Burden on the General Public
SHARE

Over the past five years, Pakistan has paid $88.91 million in interest on foreign loans. These loans, totalling $9.81 billion, were secured under the administrations of Pakistan Tehreek-e-Insaf (PTI) and Pakistan Democratic Movement (PDM) from various international financial institutions and countries for development projects.

Breakdown of Pakistan’s Foreign Loans:

  • Asian Development Bank: Pakistan received $13.03 billion, with interest payments totalling $18.17 million.
  • China: The country borrowed $2.55 billion, accruing $34.84 million in interest.
  • Germany: A loan of $1 million was secured, with $0.37 million paid in interest.
  • France: Pakistan obtained $23.17 million, resulting in $0.24 million in interest.
  • Japan: The nation received $9.74 million, incurring $0.98 million in interest.
  • Korea: Borrowed $37.50 million.
  • Saudi Arabia: Secured $4.29 million, with $0.76 million paid in interest.

Finance officials indicated high interest rates were accepted due to challenges securing loans from alternative sources. Senior journalist and economist Shehbaz Rana remarked that no prior Pakistani government had taken on such costly foreign loans. The prevailing 11% interest rate could impede Pakistan’s prospects of securing more affordable loans.

Future Loan Prospects:

The Ministry of Finance recently announced that friendly nations have agreed to roll over a $12 billion loan. This development bolsters Pakistan’s chances of securing an IMF loan package at the forthcoming meeting on September 25.

Prime Minister Shehbaz Sharif confirmed support from Saudi Arabia, China, and the UAE for Pakistan’s IMF program. He highlighted a 200 basis point reduction in the policy rate, which has relieved industrialists, investors, and the agricultural sector. The Prime Minister remained optimistic about further rate reductions and affirmed that all economic indicators are currently favourable, pointing towards the right trajectory for the economy.

Economic Improvements:

Shehbaz reported a significant reduction in inflation from 32% last year to 9.6% this year. There has been an increase in remittances from overseas Pakistanis and exports from the agricultural and IT sectors. The government continues to focus on boosting IT exports, with the Ministry of Information Technology actively pursuing this objective. Shehbaz emphasized that decisive policies have markedly improved Pakistan’s economic landscape. He urged unity and clear strategic thinking to continue advancing, asserting that the pathway to overcoming national economic challenges has been set.

TAGGED:Featured
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Advertisement

HBL Saving Made Easy
HBL Saving Made Easy

Recent Posts

Imran Khan May 9 bail appeal in SC

Imran Khan Challenges LHC Bail Rejection in May 9 Riots Cases at Supreme Court

Lionel Messi MLS ban

Lionel Messi Upset Over MLS Ban for Missing All-Star Game

NASA layoffs 2025

NASA Confirms 20% Workforce Reduction

Post Archives

More Popular from Photonews

Makhachev Della Maddalena threat
Sports

Khabib: Jack Della Maddalena Poses Bigger Threat to Islam Makhachev Than Ilia Topuria

3 Min Read
oil prices drop July 2025
Business

Oil Prices Dip Amid US Trade Talks and EU Sanctions on Russian Energy

3 Min Read
Balochistan Honor Killing Arrests
Balochistan

Balochistan CM Confirms 11 Suspect of Honor Killing Arrested

2 Min Read
Top NewsWorld

Iran Confirms Nuclear Talks with E3 in Istanbul Amid Sanctions Threat

Iran has confirmed it will hold nuclear discussions with Britain, France, and Germany, known as the…

July 21, 2025
Tech

BYD to Launch First Pakistan-Assembled EV by Mid-2026

Chinese electric vehicle giant BYD plans to launch its first car assembled in Pakistan by July…

July 24, 2025
Punjab

BISE Sahiwal Announces Matric Result 2025

The Board of Intermediate and Secondary Education (BISE) Sahiwal announced the results of the Matric Annual…

July 24, 2025
Entertainment

Fantastic Four First Steps July 2025: Cast, Plot, Rotten Tomatoes Score

Marvel Studios' "The Fantastic Four: First Steps" is scheduled for release on July 25, 2025. This reboot features…

July 26, 2025
PhotoNews Pakistan

Always Stay Up to Date

Subscribe to our newsletter to get our newest articles instantly!

Categories

  • World
  • Pakistan
  • Punjab
  • Sindh
  • Khyber Pakhtunkhwa
  • Balochistan
  • Azad Jammu Kashmir

 

  • Top News
  • Business
  • Entertainment
  • Sports
  • Videos
  • Tech
  • Offbeat
  • Blog

© 2024 Phototnews
All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?