July 20, 2020 (MLN): The latest ‘Debt Report 2020’ by the World Bank has said that Pakistan is by far the largest borrower within the group of DSSI eligible countries, with an external debt stock of $73 billion at end 2018.
According to the report, nearly 85 percent of this amount is owed to official creditors with nearly half accounted for by multilateral creditors.
Regarding the DSSI eligible countries, the report pointed out that their external debt stock is highly concentrated. The seven largest borrowers in this group accounted for 52 percent of the end 2018 debt stock and the 15 largest borrowers for over 70 percent.
Furthermore, the report suggested that the bond issuance in international capital markets has also become an important source of financing for some DSSI-eligible countries. Over the past decade (2010-2019) 30 countries in this group, issued bonds in the international capital market. The combined issuance totaled $87 billion of which the majority, 85 percent, were issued by sovereign governments and public sector entities.