PTI government retires record of Rs. 1,548 Arab ($9.5 Billion) in Its First Year
ISLAMABAD: Hammad Azhar, Minister of state for revenue, on Friday, said “The government (PTI) had retired record foreign loans worth of $9.5 Billion in its first year in power which had never been done by any other government in a single year”Hammad Azhar in National Assembly Yesterday
This is the highest loan repayment done by Pakistan in the last 40 years. The country just went out on a last bailout package of $6 billion form the International monetary fund as it aims to survive without any further support.
In response to the claim made by the opposition that the government had obtained a domestic loan worth of 7000 Billion or 10,000 Billion, Hammad Azhar denied the allegations by calling them “ highly exaggerated”.
He highlighted the country’s debt profile which showed that PMLN converted many long term commercial loans into short term loans that troubled the new government in many ways.
He reminded the opposition that Pakistan’s total liabilities rose from 6000 billion to 31,000 billion in the last 10 years that led to massive inflation and devaluation across the country. He further claimed that the devaluation of PKR is due to negligence and ugly policies of PMLN.
The government stated that they are focused on increasing the country’s exports and workers remittances, and reduce imports,” ,The government has hoped to receive $22 billion in remittances from overseas Pakistanis.
He also stated that during the initial year of PTI government, the external debts were increased by US $2.7 Billion as compared to those foreign loans which were surged by over US $7 Billion in the last year of PML-N. He also said that the government had shared the debts profile with the house which explains all the debts
The foreign loans are standing at 30,000 billion. PTI has paid back 1500 billion in its first year and has proposed to return a further amount of 3000 Billion in the next fiscal year.
Although the loan repayment looks great for the country’s economy, however, how much PTI has landed to the loan basket is yet to be revealed.
The author is an Inquisitiveness investigator and a political analyst currently doing Bachelors in BA from Iqra University.