Pakistan external debts, liabilities surge by 4.56 billion in 2015
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.