Pakistan is still struggling to recover $304.5 million from five countries that have defaulted on their payments for decades, audit officials have revealed on Tuesday.
Despite multiple diplomatic and official efforts, the debts remain unsettled after more than 40 years.
According to official documents, these defaulting nations include Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau. The debts originated from export credits extended in the 1980s and 1990s, mainly for trade projects and supplies.
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In Pakistani currency, the unpaid amount exceeds Rs86 billion, with Iraq alone owing $231.3 million — the largest share of the debt. Sudan owes $46.6 million, while Bangladesh is yet to pay $21.4 million for sugar plant and cement projects. Guinea-Bissau owes $3.6 million.
Past recovery attempts have failed
The Auditor General’s Office first flagged this issue in 2006-07, yet no significant recovery has been made since.
Officials from the Ministry of Economic Affairs say repeated attempts have been made through the Foreign Office, diplomatic channels, and joint ministerial committees. Reminder letters and demand notices have also been sent to the defaulting countries.
Aidit officials call for higher-level intervention
Audit officials have recommended that the matter be taken up at the highest political and diplomatic levels to ensure repayment. They stressed that prolonged inaction is causing further financial loss, especially given the rupee’s depreciation over time.
