ISLAMABAD: The federal government has decided to borrow $15.5 billion in Financial Year 21-22 to meet its expenditures, sources told The Correspondent on Saturday.
According to the Finance Ministry sources, Islamabad will take $3 billion from the International Monetary Fund (IMF) in the upcoming financial year in line with the $6 billion agreement signed with the international money lender in 2018. IMF has lent Pakistan $2 billion so far.
Pakistan will receive $5.2 billion under bilateral and multilateral agreements. The government will borrow $7.2 billion from commercial banks, sources claimed.
They claimed that the government will spent $11.3 billion — this includes $1.9 billion to be set aside for interest payment — on debt servicing in the upcoming year.
During the outgoing financial year, Pakistan borrowed $12.13 billion from foreign and local donors, according to 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 had issued bonds worth $2.50 billion were issued during the outgoing 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.