This is how you get gang banged by other countries who you call as brothers.
50% of borrowing comprises rollovers as govt relies on external creditors
tribune.com.pk
Summary:
1) Pakistan secured a record $26.7 billion in foreign loans during the last fiscal year, nearly half of it in the form of rollovers of previously obtained loans, indicating the country's deepening dependence on multilateral and bilateral creditors.
2) Of the $26.7 billion in foreign loans, only $3.4 billion or nearly 13% was received for project financing, official details released by the Ministry of Economic Affairs on Tuesday revealed.
3) Such low receipts for project financing underscore the difficulties in repaying the loans, as most foreign borrowings are used for budgetary support and to build foreign exchange reserves, neither of which generate revenues for repayment.
--> They have so much undocumented economy, they can't print their own money to cover budget deficit. They instead borrow in dollars in style.
4) The International Monetary Fund (IMF) disbursed $2.1 billion, while another $12.7 billion came as rollovers of cash deposits from Saudi Arabia, China, the United Arab Emirates, and Kuwait.
5) Saudi Arabia has placed $5 billion in cash deposits with Pakistan's central bank, charging a 4% interest on the loans. The amount is rolled over annually as Islamabad remains unable to repay.
--> Saudi charging interest to Muslim ummah brother? What happened to Shariah financing?
Now drum roll please, sweeter than honey friend giving the real L to iron brother
6) China has placed $4 billion in cash deposits, charging over 6% in interest. The UAE has deposited $3 billion with the central bank.
6% interest on $4 billion loan is $240 million per interest alone. Now add the interest of Saudis that's another $200 million. Ofcourse, UAE and other countries would have charged 4% minimum interest. That would be another $120 million. They are paying $560 million on interest for $12 billion roll over loans. This is only to maintain forex reserves.
What makes me happy is Porkis can never stop begging, because
7) For three fiscal years, FY2025-26 to FY2027-28, the IMF has projected Pakistan's gross external financing requirements at $70.5 billion. These figures may vary depending on changes in the current account deficit, remittance flows, and exports.
$70 billion? Bring on the bigger begging bowl for the Pork awam, the smaller bowl no longer will suffice.