Pakistan’s FY27 external debt servicing projected at $21.5bn: SBP governor

The State Bank of Pakistan (SBP) reported on Monday the country’s external debt servicing would be around $21. 5 billion for the current fiscal year 2026-27, almost $5 billion lower compared to $26. 5 billion repaid in the previous fiscal year 2025-26. Providing a breakdown, SBP Governor Jameel Ahmad said the country is expected to repay $18 billion in principal during FY27, while interest payments are projected at $3. 5 billion. “Out of the total $21. 5 billion for FY27, [around] $6 billion is already settled in July 2026, ” he said, adding July repayments included $4 billion in principal payments and $1. 4 billion in interest payments. The central bank chief said that in a press conference held to announce the bank’s key policy rate for the next six weeks. The SBP’s Monetary Policy Committee (MPC), in its first meeting in the fiscal year 2026-27, decided to keep the policy rate unchanged at 11. 5%. Ahmad anticipated Pakistan’s external account would improve with increased inflows expected on account of workers’ remittances, export earnings and Roshan Digital Account (RDA) inflows. The workers’ remittances are estimated at $44 billion in FY27 – up by $2. 4 billion compared to record $41. 6 billion received in FY26 despite the ongoing Iran-US war since late February 2026. The export earnings are estimated to improve to $32 billion in FY27 from $30. 13 billion recorded in FY26, according to SBP chief. The inflows of RDA have improved to $300 million a month in recent months from around $200 million a month till a few months back. This is contributing to an improved external account situation, the SBP governor said. “On the other hand, the import payments would soar by $4. 5-5 billion to around $69 billion in FY27 compared to $64. 5 billion in FY26. “Despite the projected increased imports, the country’s foreign exchange reserves (held by SBP) would hit a new all time high at $20. 20 billion by end of December 2026 and would continue to improve, going forward, in the second half (Jan-Jun) of FY27, ” SBP governor maintained.

Read full story on Business Recorder