An audit report has revealed that five countries owe Pakistan more than $300 million in unpaid export credits.
According to official documents, Pakistan is yet to recover a total of $304.5 million from Iraq, Bangladesh, Sudan, Sri Lanka, and Guinea-Bissau. These credits were extended by Pakistan during the 1980s and 1990s.
In local currency, the unpaid amount exceeds Rs. 86 billion.
Iraq is the biggest defaulter, with dues of $231.3 million. Sudan owes $46.6 million, while Bangladesh has an outstanding payment of $21.4 million. The funds were mainly used for sugar and cement plant projects. Guinea-Bissau owes about $3.65 million. The specific amount owed by Sri Lanka was not detailed in the report.
The Auditor General of Pakistan had already highlighted this issue in earlier audits dating back to 2006–07. Despite the passing of nearly two decades, the funds have not been recovered.
Officials say that the Ministry of Economic Affairs is trying to recover the amount through the Foreign Office. Diplomatic channels and joint ministerial committees are being used. Reminder letters and demand notices have also been sent.
The Auditor General has recommended that the government raise the matter at higher diplomatic levels to ensure repayment.
This situation shows the long-standing challenges in recovering international loans. Stronger follow-up and government-level efforts may be required for success.
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