ISLAMABAD (Kashmir English): Pakistan is still struggling to recover $304.5 million from five nations including Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau that have defaulted on their payments for decades, audit officials revealed on Tuesday.
Despite multiple diplomatic efforts, the debts remain unsettled after more than 40 years even.
Local media reported the names of defaulting countries citing official documents. It said the debts originated from export credits extended in the 1980s and 1990s, mainly for trade projects and supplies.
Recoverable amount exceeds Rs86 billion
According to the official documents, in Pakistani currency, the recoverable 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.
Auditor General of Pakistan
The Auditor General’s Office first raised this issue in 2006-07 with no significant recovery since.
Ministry of Economic Affairs officials said repeated attempts have been made through the Foreign Office, diplomatic channels, and joint ministerial committees. Reminding letters and demand notices have also been sent to the defaulting nations.
Audit officials have recommended that the matter be taken up at the highest diplomatic and political levels to ensure recovery.
They are of the view that prolonged inaction is causing financial loss, especially given the rupee’s depreciation over time.
