PML-N plans to take $12.53bn loan until June 2018

Author: By Qazi Ziyad

ISLAMABAD: The PML-N-led government has devised a plan to take foreign debts of $12.53 billion until June 30, 2018.

Under the plan the foreign debt of $6.63 billion would be taken during current financial year while a loan of $5.89 billion would be obtained during next fiscal year.

It is revealed that the government had already taken the loans of $20.500 billion during its three-year tenure from international donor agencies.

Due to the constant fall in the exports of the country, increasing imbalance in debt servicing , the government is under pressure to maintain the rate of inflation and it is only dependent on foreign debts. The pressure is mounting on the government by each passing day, as if the government would increase the rate of inflation, it would certainly bring a flood of price hike in the country, and it would be very difficult for it to go in the next elections.

Daily Times has got the documented evidence that the government has decided to take $6.63 billion during 2016-17 under Midterm Debt Management Strategy. Under the plan $2.85 billion would be taken from the World Bank, $500 million from the Asian Development Bank and $350 million would be obtained from other donor agencies for various developmental projects.

Similarly the government would also get $1 billion from Safe China Deposit, $500 million would be obtained from Euro Bonds, Islamic Development Bank and the Islamic Trade Finance Cooperation will give $1.13 billion.

In addition to the foreign debt the government would also take $300 million from the commercial banks in the current financial year.

The documents revealed that during the fiscal year of 2018-19 the government plans to take $5.95 billion as foreign debts.

The government had taken foreign loans of $8 billion in FY2013-14, $7.92 billion in financial year 2014-15 and $8.92 billion in fiscal year 2015-16.

In addition to this the government would have to pay interest of $2.74 billion on the loans taken during the last three years.

The country had to repay the total loans of Rs $40.800 billion before the 2013 general elections and with an addition to $20.500 billion during the PML-N government, the volume of total foreign debts would be swelled to $70.300 billion after next general polls.