Pakistan has borrowed $12.13 billion from foreign and local donors during the current fiscal year, the Economic Affairs Division revealed.

The Asian Development Bank (ADB) lent Pakistan the largest sum of $1.28 billion.

It said Pakistan received $3.37 billion under multilateral agreements.

The government issued bonds worth $2.50 billion were issued this fiscal year, the Economic Affairs Division added.

The Pakistan government also borrowed $3.60 billion from commercial banks.

Under bilateral agreements, $417 million was received from China, US, Germany, Japan and others.

NEXT FISCAL: Meanwhile, the government on Friday sought National Assembly’s authorisation to borrow Rs26.3 trillion in the next fiscal year to repay and service loans, which was 81 percent higher compared to the original demand in the outgoing year and indicated indebtedness of the country.

The amount of five demands worth Rs26.3 trillion is more than the total size of federal budget 2021-22, which is Rs8.5 trillion. The difference exists because the government does not book loans, taken for repayment of domestic and foreign debt, in the budget. These transactions are settled outside the budget.

The demand for Rs26.3 trillion for repayment of principal loans and debt servicing is higher by Rs11.7 trillion or 81 percent against the outgoing fiscal year’s requirement under these heads, according to documents.

Finance Minister Shaukat Tarin placed the demands before the National Assembly under the head of charged expenditures. The authorisation of roughly another Rs300 billion has been sought to meet obligatory expenditures of the National Assembly, Senate, Election Commission, Supreme Court, President of Pakistan, Islamabad High Court, federal and tax ombudsmen and foreign office.

The writer is a member of staff
The reporting desk can be reached at info@thecorrespondent.com.pk

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