Engineering Post Report
Pakistan’s external debt is derived from four key sources.
Around 48 per cent as such comes from multi-lateral loans, 32 per cent from bilateral loans, 7 per cent from Eurobonds/ Sukuk and 14 per cent commercial loans including non-residential investment in domestic government securities.
Although borrowing from commercial sources has relatively increased during the last few years , multilateral and bilateral sources still cumulatively constitute 79 percent of external public dent portfolio at the end of third quarter of financial year2019-20 prior to pandemic of Corona-Virus attack. These multilateral and bilateral loans are contracted at concessional terms such as low cost and longer tenor and are primarily utilized to address structural issues and promote reforms in the areas of energy, taxation, business, trade, education and others.
