Pakistan is still trying to recover over $304 million from five countries that have not cleared their dues for decades, according to audit officials. These unpaid debts have been pending for more than 40 years, despite repeated efforts from Islamabad.
The countries that owe money to Pakistan include Sri Lanka, Bangladesh, Iraq, Sudan, and Guinea-Bissau. The loans were given in the 1980s and 1990s under export credit agreements, mostly for trade projects and supplies.
Iraq has the biggest outstanding amount, with $231.3 million still unpaid. Sudan owes $46.6 million, while Bangladesh is yet to clear $21.4 million linked to sugar plant and cement projects. Guinea-Bissau has to pay $3.6 million, and Sri Lanka also remains on the list. In Pakistani currency, the total unpaid amount is now over Rs86 billion.
The Auditor General’s Office first highlighted the issue in 2006-07, but no meaningful recovery has been made since then. Officials from the Ministry of Economic Affairs say that the government has made repeated attempts through the Foreign Office, diplomatic channels, joint ministerial committees, and by sending official demand letters. However, these efforts have not been successful.
Audit officials have now urged the government to raise the matter at the highest political and diplomatic levels. They warn that delays are adding to financial losses, especially with the rupee’s constant depreciation.
This decades-old debt remains a financial burden on Pakistan, with no clear sign of resolution unless stronger diplomatic action is taken.
