A recent audit report has revealed that five countries owe Pakistan a staggering $304.5 million. According to the report, these countries include Iraq, Bangladesh, Sri Lanka, Sudan and Guinea-Bissau.

 

According to the details, Pakistan extended export credit to these countries as far back as the 1980s. The unpaid amount translates to over Rs86 billion, which, for reference, is over two times the Rs39.5 billion budget allocated for the Higher Education Commission (HEC) for fiscal year (FY) 2025-26.

 

Data from reports that Iraq owes Pakistan the most, with Islamabad expecting $231.3 million in repayment. Sudan trails behind, owing Pakistan a hefty $46.6 million, while Guinea-Bissau owes Pakistan just $3.653 million.

 

Bangladesh owes Pakistan $21.4 million, with no repayments made for cement and sugar plant projects. The Auditor General of Pakistan has advised using diplomatic channels to recover the funds.

 

Efforts are reportedly underway to recover the funds, as officials from the Ministry of Economic Affairs are utilising joint ministerial committees and diplomatic channels to push for the recovery via the Foreign Office. As per the details, authorities have sent demand notices and reminder letters to all five countries to recover the unpaid amounts. 

 

It merits a mention that authorities sent demand notices and reminders nearly two decades ago, after the AGP flagged the pending repayments in the 2006-07 audit. Another concern is that the repayment amount is expressed in nominal terms, whereas the value of $304.5 million in 2025 is vastly different from its face value in the 1980s and 1990s, when Pakistan initially extended these amounts to these countries.

 

According to a consumer price index (CPI) calculator, the amount adjusted for inflation could range from $749 million to $1.19 billion, depending on the dates the support was extended to these five countries. In rupees, this corresponds to a present-day value of Rs211.5 billion to Rs335.5 billion.

 

It merits a mention that the aforementioned figures have been adjusted for inflation and don’t account for potential earnings if the money had been invested in securities or other instruments.