A recent audit has brought to light that Pakistan is still owed $304.5 million by five countries, prompting the Auditor General of Pakistan (AGP) to urge government authorities to pursue recovery through diplomatic channels.
The outstanding debts date back to loans provided during the 1980s and 1990s under export credit agreements. The countries involved are Iraq, Sudan, Bangladesh, Sri Lanka, and Guinea-Bissau, with the total unpaid sum translating to more than Rs86 billion.
Iraq Tops the List of Defaulters
Iraq carries the largest share of the arrears, with $231.3 million still pending. Sudan follows with $46.6 million in unpaid loans. Bangladesh owes $21.4 million, linked primarily to sugar and cement projects, while Guinea-Bissau’s debt stands at $3.653 million.
Officials from the Ministry of Economic Affairs stated that Pakistan is actively seeking repayment through its Foreign Office, leveraging diplomatic discussions and joint ministerial committees. Multiple reminder letters and formal demand notices have already been sent to the defaulting nations.
The AGP first highlighted these unpaid loans in the 2006-07 audit, but despite previous efforts, a significant portion of the funds remains unrecovered. Experts say pursuing repayment through diplomacy can be slow, but it remains the most viable path given the age and nature of these debts.
