In three years, Pakistan has taken on $25b in fresh loans

[Trisonics]

In dollar terms, the government’s total domestic and foreign borrowings amounted to $55 billion during the last three years. However, the impact of domestic borrowing is not as adverse as that of foreign borrowings due to the liberty of printing rupee amid inflation that remains under control.

Out of the $25 billion in foreign loans the government has obtained from June 2013 to June 2016, an amount of $11.95 billion was spent in repayment of previous loans, said Rashid

In dollar terms, the government’s total domestic and foreign borrowings amounted to $55 billion during the last three years.

Out of $25 billion foreign loans, an amount of $1.85 billion was borrowed from commercial banks without competitive bidding, raising transparency concerns. While citing the work done by Dr Ashfaque Hasan Khan, Senator Saleem Mandviwalla, Chairman Standing Committee, questioned that whether the Finance Ministry was secretly borrowing from foreign sources.

A recent report by the International Monetary Fund (IMF) revealed that Pakistan’s external debt was primarily increasing because of the government’s inability to enhance exports and attract foreign direct investment.

The much-touted ‘highest-ever’ foreign currency reserves have largely been built by obtaining expensive foreign loans

In June, the government made a clever move to avert criticism against growing public debt. It amended Fiscal Responsibility and Debt Limitation Act of 2005 through Finance Act aimed at changing the goalposts to hide its inefficiencies

http://tribune.com.pk/story/1203863/external-debt-three-years-pakistan-taken-25b-fresh-loans/

 

[Chauvinist]

And by this..we succeeded in reaching from Sadar To Secretariat..

While hospitals remained distribution homes of diseases instead of cure,

While schools failed to produce "education holders",

While hunger continued to dance of death..

Hail Ganjan bros...

 

[Path-Finder]

issac $$$ the economic hitman, these noora will implode the nation before they get the kicked off their chairs.

 

[Yousafzai_M]

Waiting for some patwaris to come along and enlighten us....

 

[Saleem]

how dare you oppose the "development" of pakistan ........after all the government has set up so many "projects"...solar power park, the great nandipur-first petrol then gas then maybe biogas, the orange train, the metro bus [bus karo na yar], and so on........demoncracy must go on, the system must be saved--after all aamiriyyat is so bad........it was only zulfiwar who tore up pakistan in 71, and nawaz who sold pakistan in 1999....so son

 

[Emmie]

How dare you question award winner finance minister's policies?

 

[Hyde]

I can easily thrash the government for loan but lets be fair.

Every government takes loan for various projects in the country and we should also measure it in proportion with the GDP.

The GDP in 2013 was around $168 billion dollars when the Government tookover which has now swelled to around $290 billion dollars meaning we are likely to double the GDP within next 1-2 years.

I am not sure if the foreign loans such as Tarbela Extension project and Dasu hydropower project counts towards the loan, which I believe it does so considering the main component of loan is spent on development of key strategic projects, I really find nothing wrong in it.

We must also not forget that the time is near when we will have to payback IMF and the government decided not to seek another IMF bailout which means the total amount of loan will drastically reduce once the loan is paid back to IMF. When the Government tookover, I remember the total debt was around 66 billion dollars, reduced to 59 billion dollars after few months due to old loans expiring and then the debt has continued to swell and shrink with $5 billion dollars up and down since last few years.

 

[Sheikh Rauf]

Nawaz sharif owns 21Billion with his business property sud be sealed zardari is around 16 Billion some beurocrates gov officials businessmen and x army officers owns around 50 billions stablishment sud crack them first before they push this combing op to wadairas landlord pvt channel owners anchors and giant housing project owners.
Or just wait till people start raizing pakhtoonistan sindhudesh BLA type rats and ttp will come to take over.

 

[Flash_Ninja]

I can easily thrash the government for loan but lets be fair.

Every government takes loan for various projects in the country and we should also measure it in proportion with the GDP.

The GDP in 2013 was around $168 billion dollars when the Government tookover which has now swelled to around $290 billion dollars meaning we are likely to double the GDP within next 1-2 years.

I am not sure if the foreign loans such as Tarbela Extension project and Dasu hydropower project counts towards the loan, which I believe it does so considering the main component of loan is spent on development of key strategic projects, I really find nothing wrong in it.

We must also not forget that the time is near when we will have to payback IMF and the government decided not to seek another IMF bailout which means the total amount of loan will drastically reduce once the loan is paid back to IMF. When the Government tookover, I remember the total debt was around 66 billion dollars, reduced to 59 billion dollars after few months due to old loans expiring and then the debt has continued to swell and shrink with $5 billion dollars up and down since last few years.

The issue is the high interest loans and the frequency of taking them out. Additionally there is a clear lack of results, other countries take out loans to complete major projects and increase growth, but in Pakistan loans are taken just to keep the lights on (well, maybe not)!

Also your GDP figures are wrong, and doubling the GDP in even 5 years is impossible at a 5% growth rate. in 2 years it will be around 300-320 billion.

The only way to grow our economy at a faster rate is to first of all renegotiate with international lenders for much lower interest, restructure national institutions to strengthen civil society and businesses, and also launch some kind of worldwide PR campaign to draw foreign investors to Pakistan. There also needs to be a system of accountability for local governments that neglect their areas, PPP has done nothing to improve interior Sindh, and the lack of education, health, economy, and administration in that region is bringing down the rest of the country (and its reputation) with it. Elections are not enough, as people living in poverty will just keep voting for their 'feudal' lords over and over again.

 

[Imad.Khan]

Interesting comments by Kashif Abbasi

https://www.facebook.com/video.php?v=675223925974752