PoliticsThe PTI government borrowed 49.23 billion in 45 months

The PTI government borrowed 49.23 billion in 45 months

ISLAMABAD: In the first 9 months of the current financial year (July-March), the PTI government borrowed about ً 15.4 billion in foreign loans during the same period last year. 70% more than gone foreign loans.

In its monthly report on foreign economic aid, the Ministry of Economic Affairs said it had received about 12.77 billion in foreign aid in the first nine months of the current fiscal year (July-March), compared to the same period last year.

The Ministry of Economic Affairs’ monthly report on foreign inflows shows that the government exceeded the foreign aid target of 89 percent for the entire fiscal year.

It does not include foreign debt of more than 1.6 billion in the new Pakistan certificates of Pakistanis living abroad as it was not reported by the Ministry of Economic Affairs, including 1 1 billion from the International Monetary Fund.

Excluding the excess amount received in February, these two loans have been reported separately by the State Bank of Pakistan.

With this, the total foreign debt from external sources (excluding Pakistanis) reached 49 49.295 billion in almost 45 months of the PTI government, if the emergency loans of 1.4 billion in 45 months as well as more than 3 3 billion.

If the IMF funds are also taken into account then the total foreign debt reaches 54.767 billion. Figures from the Ministry of Economic Affairs show that the volume of foreign debt has been steadily increasing in the last three and a half years, from 10.59 billion in 2018-19 to 10.662 billion in 2019 and then 14.28 billion in 2020.

Reached 12.7 billion in the first nine months after that.

This shows that the government relied heavily on foreign debt to meet the growing current account deficit, to maintain the necessary foreign exchange reserves in order to finance higher imports and earlier loans.

This is evident from the fact that in the federal budget 22-2021, the annual budget target for foreign loans was set at 14.088 billion and the government borrowed 12.77 billion in the first nine months. Total borrowed 14.3 billion.

There were four major sources of remittances, including 3.95 billion from multilateral lenders, followed by 3 billion in time deposits from Saudi Arabia, about ً 2.623 billion in commercial loans from private banks, and 2.041 billion worth of loans. Includes international bonds.

The government received 8.88 billion in revenue for budget support, including 1.2 billion in short-term credit, the report said.

This brings the total non-project (non-project) aid in nine months to 10.114 billion, compared to the full-year target of 12.16 billion, which means that more than 80% of the total debt comes from oil imports, budget financing and Acquired on reserve for foreign exchange.

About 1.82 billion was set aside for various foreign-funded projects and about 832 million for public guaranteed loans.

Statistics show that the government has raised 2.04 billion through international bonds, compared to its full-year budget target of 3.5 billion.

The government also received 2.623 billion in commercial loans from international banks against the full-year budget target of 4.87 billion, of which Dubai Bank was found to be the preferred financier with 2.6 billion. Of this, more than 1.14 billion was in short-term loans.

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