ISLAMABAD (Daily Point) — As of the conclusion of 2022, Pakistan’s total external debt, as reported by the World Bank, reached an estimated $126.942 billion, signaling a decline from the $130.873 billion recorded at the end of 2021.

The World Bank’s “International Debt Report 2023” emphasised a substantial increase in South Asia’s external debt obligations to China, surging nearly sevenfold over an 11-year span, reaching $42.9 billion in 2022 compared to $6.4 billion in 2012. Notably, two-thirds of this amount was attributed to Pakistan.

The report specified that the total external debt stocks for 2022, inclusive of IMF credit and SDR allocations totaling $11.522 billion, amounted to $126.942 billion, in contrast to $10.841 billion in 2021. Long-term external debt stood at $106.652 billion in 2022, down from $110.958 billion in 2021.

Breaking down the public and publicly guaranteed debt by creditor and creditor type in 2022, including IMF credit, 44 percent was multilateral (16 percent World Bank, 15 percent ADB, 13 percent other multilateral), 37 percent bilateral (25 percent China, 4 percent Japan), and 19 percent private (9 percent bondholders, 10 percent other commercial).

Short-term external debt for 2022 was reported at $8.768 billion, marking a decrease from $9.074 billion in 2021.

Key ratios for 2022 included external debt stocks as a percentage of exports at 320, down from 360 percent in 2021; external debt stocks to GNI at 34 percent, a decrease from 38 percent in 2021; and debt service as a percentage of exports at 42, up from 34 percent in 2021. The gross national income (GNI) was recorded at 371.237 in 2022, compared to 341,730 in 2021.

Among long-term external debt stocks, public and publicly guaranteed debt were $91.520 billion in 2022, down from $95.413 billion in 2021. Commercial banks and others accounted for $15.133 billion in 2022, compared to $15.545 billion in 2021, while bondholders remained at zero in both years.

The report also highlighted Pakistan’s debt management efforts, including the publication of a semi-annual debt bulletin for July–December 2021 and an annual report on public debt, comparing debt management strategy implementation with targets for end-FY2022. Additionally, provincial finance departments published semi-annual debt bulletins for July–December 2022, adhering to international reporting standards for Public Sector Debt Statistics in FY2023.