ISLAMABAD – While Pakistan continues to service its debts to various international lenders and countries, it has emerged that five nations owe Pakistan over $304.5 million, with no repayments made in over four decades.
It was revealed in a recent audit report, stating that the defaulters include Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau, all of whom received export credit from Pakistan during the 1980s and 1990s.
Despite repeated efforts, the Government of Pakistan has been unable to recover the outstanding amounts.
The audit report highlights that in local currency, the total amount exceeds Rs86 billion. The largest defaulter is Iraq, which owes $231.3 million, followed by Sudan with outstanding dues of $46.6 million.
Bangladesh is yet to repay $21.4 million related to sugar plant and cement exports, while Guinea-Bissau owes $3.65 million. Sri Lanka is also listed among the countries in default.
The Auditor General of Pakistan had initially flagged these outstanding recoveries back in 2006-07, yet little progress has been made since then.
Officials from the Ministry of Economic Affairs stated that efforts for recovery are ongoing through the Ministry of Foreign Affairs, using diplomatic channels and joint ministerial committees. Reminder letters and demand notices have also been sent to the concerned countries.
The audit body has now recommended that the matter be raised at an appropriate level to ensure recovery of the long-pending dues.
