A recent audit report has disclosed that five countries: Iraq, Bangladesh, Sri Lanka, Sudan, and Guinea-Bissau, collectively owe Pakistan $304.5 million in unpaid export credits, some dating back to the 1980s.
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According to the Auditor General of Pakistan, Iraq tops the list with $231.3 million outstanding, followed by Sudan with $46.6 million, Bangladesh with $21.4 million, Sri Lanka with $1.53 million, and Guinea-Bissau with $3.65 million. Much of this debt stems from projects involving cement and sugar plants, with little to no repayment over decades.
The unpaid amount — over Rs86 billion — is more than double the Rs39.5 billion budget allocated for the Higher Education Commission (HEC) in FY 2025-26. Adjusted for inflation, the debt could be worth between $749 million and $1.19 billion today, equivalent to Rs211.5–335.5 billion.
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Authorities have been sending demand notices and reminders since the 2006–07 audit flagged the issue, but recovery remains stalled. The Ministry of Economic Affairs is now using joint ministerial committees and diplomatic channels through the Foreign Office to push for repayment.
