Minister of Finance and Public Enterprises Hassan Zareer has revealed that the state has spent USD 648.51 million on debt repayment over the last eight months alone, marking a historic fiscal milestone that exceeds the total amount spent on debt servicing over the preceding nine years.
Speaking at the ruling People's National Congress (PNC) Congress, Minister Zareer delivered a comprehensive presentation detailing the government's financial trajectory and achievements over the past two and a half years.
According to the Minister, the nation’s debt obligations remained relatively low between 2015 and 2020. However, the economic fallout of the COVID-19 pandemic triggered an initial post-crisis repayment requirement of around USD 25.94 million, setting off a steady escalation in national debt burdens. By the close of 2024, total state debt obligations had surged to USD 3.3 billion, making the previous and current years the most demanding periods for loan repayments in the country's history.
"In the past 8 months of this year, USD 648.51 million in loans has been paid off. Based on trends, this figure is roughly equivalent to the total amount that had to be paid from 2015 through 2023," Minister Zareer said.
He added that as a direct consequence of these soaring obligations, a significant majority of the foreign currency currently entering the state is immediately funneled into loan servicing.
In addition to debt metrics, the Minister shed light on national expenditures concerning fuel imports—a major pressure point on state reserves. Highlighting historical data, Minister Zareer noted that fuel import costs peaked in 2022 at a staggering USD 831 million, remaining above the USD 700 million threshold for the subsequent three years. However, offering a measure of fiscal relief, the Minister reported that fuel expenditures have seen a downward trend so far this year, currently standing at USD 683 million.