Govt projects to get Rs5.906tr foreign loans

ISLAMABAD   -   Pakistan has projected to borrow Rs5.906 trillion from external sources in the next fiscal year, which would further enhance the volume of public debt of the country that is already increasing.

The government is estimated to borrow Rs5.906 trillion from international donors in the next fiscal year 2024-25, which is 17 percent higher than the borrowing of Rs5.035 trillion of the outgoing fiscal year, according to the budget documents. Interestingly, Pakistan has not budgeted any amount from the International Monetary Fund (IMF). Pakistan is seeking a new loan programme from the IMF.    

The breakup showed that the government would borrow Rs1.144 trillion from the commercial banks in the next fiscal year, which was revised to Rs285 billion in the current fiscal year. The government has budgeted Rs 323.266 billion under project loans for 2024-25 compared to Rs68.311 billion for 2023-24 which was later revised to Rs290.644 billion. In the programme loans, the government has projected external assistance of Rs 277.890 billion for 2024-25 as compared to revised Rs373.457 billion.

The government has projected Rs 1.475 trillion loans from KSA time deposit against Rs 580 billion for 2023-24 which was later revised to Rs 1.425 trillion. Further, the government has budgeted no amount under the head of new deposit UAE for 2024-25 compared to Rs 290 billion for 2023-24 which was later revised to zero. The government has budgeted Rs 1.180 trillion from safe deposit for 2024-25 against Rs1.160 trillion for 2023-24 which was revised to Rs 1.140 trillion. The government has budgeted Rs 295 billion from Euro bonds for 2024-25 against Rs 435 billion for 2023-24 which was later revised to zero.

It is worth mentioning here that Pakistan’s total public debt was recorded at Rs 67,525 billion at the end-March 2024, registering an increase of Rs4,644 billion (7.3 percent) during the first nine months of current fiscal year, as it stood at Rs62,881 billion on June 30,2023. External public debt was recorded at $86.7 billion (Rs24,093 billion) at end-March 2024, revealing an increase of around $2.6 billion during the first nine months of the current fiscal year. Domestic debt was recorded at Rs 4

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