Bad news for Shehbaz Sharif as Pakistan nears bankruptcy, will soon face Rs 650000000000 ‘bomb’ due to….

The bankrupt Pakistan is required to repay USD 23 billion this year. To meet this obligation, USD 12 billion will be received as temporary deposit amounts from four of its friendly countries.

New Delhi: Bankrupt Pakistan is likely to witness more financial crunch in the current financial year. According to the reports, if Pakistan fails to repay a debt of Rs 6.50 lakh crore (approximately USD 23 billion) during this period, a default is likely. Citing Pakistan’s Economic Survey 2024–25, The News reported that the government is required to repay USD 23 billion in debt during 2025–26. Failure to do so could push the country to the brink of default.

The country’s total public debt stood at Rs 76.01 trillion by the end of March 2025. This includes Rs 51.52 trillion in domestic borrowing (approximately USD 180 billion) and Rs 24.49 trillion (around USD 87.4 billion) in external loans.

The external debt is divided into two parts: funds borrowed directly by the government and loans received from the IMF. This debt has accumulated over years due to economic mismanagement, temporary funding solutions, and repeated bailouts.

However, the repayment demands for this year have exposed how little room the government has left to maneuver.

USD 12 Billion in Temporary Deposits

The bankrupt Pakistan is required to repay USD 23 billion this year. To meet this obligation, USD 12 billion will be received as temporary deposit amounts from four of its friendly countries. These include USD 5 billion from Saudi Arabia, USD 4 billion from China, USD 2 billion from the United Arab Emirates, and USD 1 billion from Qatar.

Here are some of the key details:

• Pakistan is required to repay USD 23 billion this year.
• USD 12 billion will be received as temporary deposit amounts from China, UAE, Saudi Arabia and Qatar.
• USD 5 billion from Saudi Arabia, USD 4 billion from China, USD 2 billion from the United Arab Emirates, and USD 1 billion from Qatar.
• If any of these countries decide to withdraw their support, Pakistan will have to repay the entire amount within this year.
• The News has warned that if these friendly nations refuse to extend the rollover of their deposits, the situation could deteriorate further.
• This would make repayment unavoidable for the government, pushing it to rely more on diplomatic goodwill than on financial strength. And there are signs that even that goodwill is weakening.

USD 11 Billion in Payments Still Pending

The Shehbaz Sharif government still has to pay around USD 11 billion to external creditors this year even if all its temporary deposits are rolled over. This includes USD 1.7 billion in international bonds, USD 2.3 billion in commercial loans, USD 2.8 billion to institutions like the World Bank, Asian Development Bank, Islamic Development Bank, and Asian Infrastructure Investment Bank, and $1.8 billion in bilateral loans.

This financial burden comes at a time when Pakistan’s foreign exchange reserves are already under pressure. The country has limited sources of new income and is still awaiting a new extended programme from the IMF.