While Pakistan continues to meet its repayment obligations to various international lenders and countries, a recent audit report has disclosed that five nations collectively owe Pakistan more than $304.5 million — debts that have remained unpaid for over four decades.
According to the report, the defaulting nations include Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau. These countries had received export credit facilities from Pakistan during the 1980s and 1990s, mainly to finance the purchase of goods and equipment. Despite repeated follow-ups, the Government of Pakistan has been unable to recover the outstanding amounts.
In local currency, the unpaid debt exceeds Rs86 billion. Iraq tops the list of defaulters with $231.3 million in dues, followed by Sudan with $46.6 million. Bangladesh owes $21.4 million, largely linked to the export of sugar plant equipment and cement. Guinea-Bissau’s outstanding debt stands at $3.65 million, while Sri Lanka is also among the countries in default.
The issue is not new. The Auditor General of Pakistan had first flagged these long-pending recoveries during the 2006–07 audit cycle. However, little tangible progress has been achieved in securing repayments since then.
Officials from the Ministry of Economic Affairs said that recovery efforts remain ongoing. The matter is being pursued through the Ministry of Foreign Affairs using diplomatic channels, joint ministerial committees, and the issuance of reminder letters and formal demand notices to the concerned governments.
The audit body has recommended that Pakistan raise the matter at an appropriate political and diplomatic level to ensure repayment of these long-overdue debts. The report also underscores the need for a stronger follow-up mechanism to prevent such prolonged delays in the future.
This revelation comes at a time when Pakistan is under significant financial pressure, making the recovery of such funds increasingly important for the country’s economic stability.
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