The federal cabinet on Tuesday approved pledging Pakistan’s seashore infrastructure, sports and tourism facilities and a few remaining major road networks to raise more debt after borrowing nearly Rs2 trillion by giving all major airports and highways in surety during the past one year.
Both the cabinets of former prime minister Imran Khan and Prime Minister Shehbaz Sharif have been doling out national assets to raise loans but have failed to mend their spending habits that has already increased the federal government’s debt close to Rs45 trillion.
Headed by Prime Minister Shehbaz Sharif, the federal cabinet approved giving six more national assets in collateral to domestic and international lenders ---10 days after the same highest decision-making body approved Rs4.6 trillion deficit bill for fiscal year 2022-23.
Planning Minister Ahsan Iqbal on Tuesday told the media that the federal cabinet approved a summary of the finance ministry regarding issuance of domestic and international Sukuk against the assets of the government. He did not disclose the details of the assets.
But the summary showed that the cabinet approved pledging portions of West Wharf and East Wharf, Karachi, land and hotels of the Pakistan Tourism Development Corporation (PTDC) and portions of Islamabad Sports Complex.
The cabinet also approved giving Islamabad Metro, portions of Grand Trunk (GT) road, Islamabad Expressway, portions of Makran Coastal Highway (N-10) and Indus Highway (N-55) in collateral to raise debt.
The federal cabinet also allowed the finance ministry to issue domestic and international Islamic bonds to raise debt against the assets. However, the international bonds cannot be floated until Pakistan is able to secure a deal from the International Monetary Fund.
Just a year ago, former prime minister Imran Khan-led federal cabinet had also approved giving in surety the national motorways and airports to raise debt, which the Finance Ministry has almost exhausted. In the past one year, the Finance Ministry raised Rs1.2 trillion debt by giving assets of National Highway in surety and another Rs672 billion by giving airports in collateral, the Finance Ministry informed the federal cabinet.
tribune.com.pk
Both the cabinets of former prime minister Imran Khan and Prime Minister Shehbaz Sharif have been doling out national assets to raise loans but have failed to mend their spending habits that has already increased the federal government’s debt close to Rs45 trillion.
Headed by Prime Minister Shehbaz Sharif, the federal cabinet approved giving six more national assets in collateral to domestic and international lenders ---10 days after the same highest decision-making body approved Rs4.6 trillion deficit bill for fiscal year 2022-23.
Planning Minister Ahsan Iqbal on Tuesday told the media that the federal cabinet approved a summary of the finance ministry regarding issuance of domestic and international Sukuk against the assets of the government. He did not disclose the details of the assets.
But the summary showed that the cabinet approved pledging portions of West Wharf and East Wharf, Karachi, land and hotels of the Pakistan Tourism Development Corporation (PTDC) and portions of Islamabad Sports Complex.
The cabinet also approved giving Islamabad Metro, portions of Grand Trunk (GT) road, Islamabad Expressway, portions of Makran Coastal Highway (N-10) and Indus Highway (N-55) in collateral to raise debt.
The federal cabinet also allowed the finance ministry to issue domestic and international Islamic bonds to raise debt against the assets. However, the international bonds cannot be floated until Pakistan is able to secure a deal from the International Monetary Fund.
Just a year ago, former prime minister Imran Khan-led federal cabinet had also approved giving in surety the national motorways and airports to raise debt, which the Finance Ministry has almost exhausted. In the past one year, the Finance Ministry raised Rs1.2 trillion debt by giving assets of National Highway in surety and another Rs672 billion by giving airports in collateral, the Finance Ministry informed the federal cabinet.
Mortgaging new assets to get Rs2tr loans | The Express Tribune
Cabinet approves floating domestic, international Sukuk
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