Under the proposed guidelines, the SEC will handle the acceptance, processing and approval of applications for accreditation of external
auditors supervised by financial sector regulators.
The global lender said in case the country remained unable to fully implement these reforms, the external
debt as a percentage of gross domestic product (GDP) could hit 60% double the ratio left behind by the PML-N government.
The BSP noted that growth in foreign portfolio investments of 17.3 percent end-December last year boosted external
financial liabilities, as well as the increase in foreign direct investments and other investments.
A sum of $2.9 billion was spent on servicing outstanding stock of external
debt during first six months of this fiscal.
Meanwhile, the country's external
financial assets posted a modest growth despite the $2.6-billion decline in the BSP's reserve assets as of end-September 2018.
The report added that the external
debt to total goods and service exports reached 195.8% in June 2018.
"To the extent that these currency fluctuations reflect capital outflows or significantly lower external
inflows, they are credit negative for sovereigns with large external
'More than one-third of total external
debt is denominated in ringgit (34.3 per cent), mainly in the form of NR holdings of domestic debt securities and in ringgit deposits in domestic banking institutions.
The rise in external
debt during the period was primarily due to the increase in foreign portfolio investment (FPI) in the debt segment of the domestic capital market included under commercial borrowings.
The figure of US$79.2 billion was a mere projection, which included private sector external
debt and liabilities as well.