During the first eight months of current fiscal year, the government repaid $1.297 billion of foreign commercial loans and $1 billion of Sukuk issued in December, 2014. Further the government repaid $1.275 billion to multilaterals and $618 million worth of external loans of bilaterals.
Considering foreign exchange constraints, financing of development projects and repayments of these huge external public debts compel the incumbent government to further borrow from multiple sources, EAD stated.
It further stated that net transfers to the government were $1.456 million for the period July-February, 2019-20. Positive net transfers mainly come from programme lending by Asian Development Bank to address fiscal imbalances, ensure macroeconomic stability and secure financial sustainability in the country.