ISLAMABAD: An audit report has revealed that five countries collectively owe Pakistan over $30 million in unpaid export credits that date back to the 1980s and 1990s.
These outstanding debts, amounting to more than Rs. 8.6 billion, remain unpaid despite repeated efforts by Pakistan to recover the funds.
The countries involved are Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau. Among them, Iraq holds the largest debt burden, owing Pakistan approximately $23.13 million. Sudan follows with an outstanding amount of $4.66 million, while Guinea-Bissau owes around $3.65 million.
Bangladesh’s dues, amounting to $2.14 million, are related primarily to sugar and cement projects. Sri Lanka’s specific amount was not detailed but is included in the total sum.
The debts stem from export credits extended by Pakistan during the 1980s and 1990s, a period when Pakistan actively supported these countries through financial and material assistance, particularly for development projects.
Concerns regarding these unpaid dues were first raised by the Auditor General of Pakistan in the 2006-07 audit reports. Since then, Pakistan has sent multiple reminder letters and formal demand notices to the debtor countries in an attempt to recover the funds. However, these efforts have largely been unsuccessful, with the countries failing to respond or make payments.
The Auditor General’s recent report has once again called attention to this longstanding issue and urged the government to take stronger and more effective action. The report recommends exploring diplomatic channels, leveraging international financial institutions, or potentially pursuing legal avenues to recover the billions owed.
Recovery of these funds is considered vital for Pakistan’s economy, as the country continues to face financial challenges and aims to improve its fiscal health. The government’s response and strategy in dealing with these debts will be closely watched by economic analysts and policymakers alike.
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