Friday July 12, 2024

Govt to borrow Rs3,003 bn foreign loans, grants

By Usman Manzoor
June 12, 2019

ISLAMABAD: The Pakistan Tehreek-e-Insaf government will take more than double i.e. 120 percent foreign loan during the fiscal year 2019-2020 as compared to the previous year, budget documents reveal.

The PTI government has mentioned in the Estimates of Foreign Assistance that the government will borrow an amount of Rs3003 billion as foreign loans and grants, majority being loans, during 2019-2020 whereas these figures stood at Rs1366 billion during the previous fiscal year.

Importantly, the government will pay an amount of Rs2891.4 billion as interest on loans during the next fiscal year, says the budget. It is in the budget that the government will borrow another Rs339 billion from banks while it is hopeful that privatization proceeds will earn around Rs150 billion during 2019-20. The PTI government had been vocal against foreign loans and interest being paid upon the loans thereof but in its first budget these loans will double as compared to previous year’s borrowing from foreign resources. Pakistan’s total external debt is estimated at $105 billion as of March 2019 which is going to further surge during the next fiscal year. For the next year the government budget documents state that an amount of Rs701 billion has been allocated for PSDP while for defence affairs and services will cost Rs1152.5 billion.