A recent audit report has revealed that five countries owe Pakistan more than $304.5 million, with no repayments made for over 40 years despite repeated recovery efforts. The defaulters—Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau had received export credit from Pakistan during the 1980s and 1990s, but the outstanding amounts remain unpaid to date.
According to the report, the largest defaulter is Iraq, which owes $231.3 million. Sudan follows with unpaid dues of $46.6 million. Bangladesh has yet to clear $21.4 million linked to sugar plant and cement exports, while Guinea-Bissau owes $3.65 million. Sri Lanka is also among the countries listed in default. In local currency, the total outstanding amount exceeds Rs86 billion.
The Auditor General of Pakistan had first raised the issue of these long-standing recoveries in the 2006-07 audit, but little progress has been made since then. The audit body noted that despite repeated reminders, no concrete outcome has been achieved.
Officials from the Ministry of Economic Affairs said that recovery efforts are continuing through diplomatic channels, with the Ministry of Foreign Affairs engaging the defaulting countries via joint ministerial committees. Reminder letters and demand notices have also been sent.
The report has now recommended that the issue be raised at an appropriate diplomatic and political level to ensure the recovery of these decades-old debts.
This revelation comes as Pakistan continues to service its own debts to various international lenders and countries, underscoring the need for stronger mechanisms to safeguard export credit and ensure timely repayments in the future.
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