As opposed to claim, short term domestic loans entails lower interest rates, hence contributed less to
debt servicing cost.
The sources said other measures of
debt servicing capacity, i.e., EDS-Foreign exchange earning ratio also declined during the period.
At this rate of $2.452bn a quarter, Pakistan's
debt servicing costs are likely to reach $9.8bn during the ongoing fiscal year.
Debt servicing took up 41.8pc of current expenditure in 2012-13, but is going to consume 46.4pc in 2018-19.
The
debt servicing cost is estimated to increase to $6.42bn during the next fiscal year
The figures show a drop from the preceding quarter when the government paid $2.102bn as total external
debt servicing.
However, the increase in
debt servicing can widen the fiscal deficit.
Compared to Q1 last year, we are now paying an additional $93 million on
debt servicing instead of on programs and services for Albertans.
The massive external
debt servicing had compelled the government to take foreign borrowing in previous financial year.
Total
debt servicing in May dropped from P159.1 billion a year ago, the latest Bureau of the Treasury data showed.
KARACHI -- The government paid $2.346 billion in the third quarter of last fiscal year as
debt servicing payments, reported the State Bank of Pakistan (SBP) on Thursday.
APS Holdings, one of Europe's largest
debt servicing companies, says it has been instrumental in successful efforts to combat the problem of non-performing loans in Cyprus and Greece's.
