Pakistan is still waiting to recover more than Rs86 billion from five countries that have defaulted on payments for decades, official audit documents reveal. These outstanding loans stem from export credits extended during the 1980s and 1990s for trade projects and supplies.
According to audit records, Iraq owes Pakistan the largest share at $231.3 million, contributing the bulk of the outstanding amount. Sudan follows with unpaid debts totaling $46.6 million. Bangladesh has yet to repay $21.4 million related to sugar plant and cement projects financed by Pakistan. Guinea-Bissau owes $3.6 million in outstanding loans.
The unpaid amounts translate to over $300 million in USD, posing a significant challenge for recovery efforts. The Auditor General’s Office first highlighted the issue back in 2006-07, but progress in securing repayments remains limited.
Officials from the Ministry of Economic Affairs report that Pakistan has made multiple attempts to recover these funds through diplomatic channels, including reminders, demand notices, and joint ministerial committees. However, economic and political difficulties in the debtor nations have hampered repayments.
Audit authorities recommend escalating the matter to the highest political and diplomatic levels to ensure recovery. They warn that continued delays increase financial losses, especially as currency depreciation reduces the value of overdue amounts.