Pak­istan ex­ter­nal debts, li­a­bil­i­ties surge by 4.56 bil­lion in 2015

The Pak Banker - - FRONT PAGE -

of 2015-16. Pre­vi­ously in first quar­ter, a prin­ci­pal pay­ment of $1.096 bil­lion along with $246 mil­lion in­ter­est were also sub­mit­ted to in­ter­na­tional agen­cies and for­eign banks in the first quar­ter of 2015-16.

Eco­nomic ex­perts keep crit­i­ciz­ing the rul­ing govern­ment of PML-N for in­creas­ing bor­row­ing with dif­fer­ent banks in­clud­ing bonds and Sukuk along with lo­cal banks to run the ex­pense of gov­er­nance, and show­ing a healthy state of for­eign re­serves-- which are be­lieved to be an un­due prac­tice.

There are pre­dic­tions by dif­fer­ent fi­nan­cial news agen­cies and ex­perts that debts of the coun­try will be rock­et­ing to an ob­scene amount in 2016.

Bloomberg stated that colos­sal loans are go­ing to be ma­ture in 2016 along with will set to cross the debt burn upon na­tion to nearly $100 bil­lion whereas the govern­ment be­lieves the debts in due are not more than $ 4 bil­lion in this year. The In­ter­na­tional Fi­nan­cial In­sti­tu­tions (IFIs) are the ma­jor sources of fi­nan­cial and tech­ni­cal sup­port for de­vel­op­ing coun­tries and play a crit­i­cal role to sup­port in­fra­struc­ture de­vel­op­ment and in­sti­tu­tional re­forms, which ap­proved loans of more than $ 3 bil­lion for Pak­istan to be dis­bursed in com­ing years, SBP re­port stated. This pro­gram will sup­port pol­icy mea­sures to ad­dress ex­ten­sive debts in the power sec­tor, as well as fur­ther mar­ket re­forms to im­prove the ef­fi­ciency of pub­lic sec­tor power com­pa­nies and to en­cour­age com­pe­ti­tion through more pri­vate sec­tor par­tic­i­pa­tion. In­crease in the loans will def­i­nitely surge the amount of debt-ser­vic­ing ac­cord­ingly which may hurt the dy­nam­ics of lo­cal econ­omy and its bur­den upon the pub­lic and busi­ness in­di­rectly through taxes.

Mean­while, Ishaq Dar on Sun­day di­rected the Eco­nomic Affairs Divi­sion to en­sure ef­fi­cient uti­liz­ing of for­eign fi­nanc­ing in var­i­ous projects. Chair­ing a meet­ing to re­view per­for­mance of Eco­nomic Affairs Divi­sion, he also di­rected EAD to keep close li­ai­son with im­ple­ment­ing agen­cies to en­sure that projects are im­ple­mented as per time­lines and de­lays are avoided.

Sec­re­tary, EAD Tariq Ba­jwa briefed the Min­is­ter on the on-go­ing in­ter­ac­tion with var­i­ous mul­ti­lat­eral and bi­lat­eral de­vel­op­ment part­ners, re­lat­ing to dif­fer­ent de­vel­op­ment projects.

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