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Five Countries Owe Pakistan $304.5 Million in Unpaid Loans
Pakistan is still waiting to recover $304.5M in decades-old loans from Sri Lanka, Bangladesh, Iraq, Sudan & Guinea-Bissau. Audit report urges urgent action for recovery.
ND
by News Desk
2025-08-12
Five Countries Owe Pakistan $304.5 Million in Unpaid Loans

An audit report has revealed that five countries have defaulted on loans worth millions of dollars owed to the Government of Pakistan, with no recovery made in decades.

According to the report, the defaulting countries are Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau, collectively owing $304.5 million — equivalent to over Rs 86 billion in Pakistani currency.

The loans, provided as export credits during the 1980s and 1990s, have remained unpaid despite repeated reminders. The largest portion of the debt is owed by Iraq, amounting to $231.3 million. Sudan owes $46.6 million, while Bangladesh is yet to pay $21.4 million for sugar plant and cement exports. Guinea-Bissau’s outstanding amount stands at $3.653 million.

The report further notes that the Auditor General had flagged the non-recovery issue as far back as 2006-07, during which official reminder letters and demand notices were sent to all five countries.

In its latest findings, the Auditor General has recommended that the matter be escalated to the highest diplomatic and governmental levels to ensure the recovery of the long-standing debts.

 
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PakistanEconomy

AuditReport

LoanRecovery

InternationalDebt
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