During 2 years' banks written off Rs50.85 bn loans: Hina Rabbani Khar

State Minister for Finance and Economic Affairs Hina Rabbani Khar said that during last two years approximately Rs50.85 billions loans were waived off by banks, while Pakistan owes $31.16 billion to World Bank, Asian Developmental Bank and IMF that had also added $3.63billion as interest. Responding to point of order in parliament house here on Thursday, she stated that the government didn't aim to bring mini-budget in the country, however the government has been reviewing on budget expenditures adding that flood tax would be imposed after its approval from the parliament. She also informed the House that Pakistan has international debt of total $55billions loans and after prevailing floods devastations across the country-Pakistan wouldn't request to write off its loans. After prevailing flood devastations, the government has been reviewing its expenditures to tackle flood wreckages in the country and tax reforms could be implemented from October 1st, however the parliament would be taken into confidence for enforcement of any new tax to tackle flood devastations in the country. However at a point of order from Bushra Gohar, regarding reduction in Defence expenditures, finance minister avoided to answer and informed the house that there has been no reality in the news regarding cancellations of 11 consignments on ground of poor quality, checking and date-expiry that were tasked to export to European Countries. During last fiscal year $2.20 billion investments were made in the industrial sector that was approximately 40 per cent reduced as compare to the investments made during the years of 2008-9, Khar said. Responding to a point of order regarding smuggling of petrol and diesel to Afghanistan, she informed the house that regarding smuggling of petrol and diesel top Afghanistan there has been no record, on which Speaker remarked that how smuggling did could be come on record. She also said that the cabinet had not yet approved Afghan Transit Trade Agreement and Pakistan owes $11.49 billion to World Bank with an interest of $1.69 billion on these loans and Pakistan owes $11.58 billions to ADB that added $1.49 billions interest and loan of IMF has increased to $8.7 billion, while ratio of interest on it had become $440 million. Responding to another supplementary question, she informed the house that till June 30, 2010 total value of foreign loans on Pakistan was $55 billion adding that waving of loans had not been an easy task because if loans were written off then in future-the country couldn't get loans that would cause its negative implications. She also said that the government is focused to approach foreign markets for domestic productions instead of waving off loans. The report regarding flood wreckages had not yet been finalized and the government had not yet gain loans to compensate the flood affectees and during last two years the banks across the country have written off Rs50 billion loans due towards 252,114 people and companies.

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