ISLAMABAD: Pakistan Public Debts: Startling facts about Government Borrowings
Finance Minister, Senator Muhammad Ishaq Dar while giving details about the public debt said that from 1947 to 30 June 1999 the debt stood at Rs 2940 billion.
This reached to Rs 5800 billion in Musharraf regime which was further increased to Rs 14,318 in Peoples Party regime, (if circular debt is included), showing an increase of 1900 billion.
During the last fourteen years, the public debt collectively increased by Rs 12,000 billion.
He said currently the debt portfolio is Rs 19168 billion, an increase of 4850 billion.
He said that the government’s external borrowing stood at $15.23 billion during last 2.5 years, out of which $ 10 billion were spent on paying back the debt taken by the previous governments, hence there was only $5.23 billion increase in debt during this period.
Dar said that all the external debt was taken at 3.3 % cost and if the grants are added the cost would go less than 3 %.
He said that foreign exchange reserves have been recorded at $21.50 billion and informed the House the reserves would touch $22 billion mark soon.
He said funds for Public Sector Development Project (PSPD) have been increased from Rs 348 billion to Rs 800 billion while the amount for Benazir Income Support Programme (BISP) has been increased from Rs 102 billion to Rs 115 billion.
He said the government was providing all resources for armed forces and TDPs and has spent Rs 240 billion on Operation Zarb-e-Azb.
The repatriation process of TDPs has been started and all resources were being provided in this regard, he added.
He said China Pakistan Economic Corridor (CPEC) was a game changer for the region and work on western route of CPEC has been started from Burhan to D.I.Khan. He added the government was implementing all decisions of the All Parties Conference regarding CPEC.
About concerns of the Opposition regarding not holding population census and announcement of the NFC Award, the Minister the 9th NFC award was constituted in 2015 and its working groups have been constituted on four subjects and their recommendations would be placed in the next meeting for consideration.
He said all arrangements were made in March 2016 for census but it was postponed due to engagement of army in operation Zarb e Azb.
The Minister said it was top priority of the government to strengthen industry and agriculture sectors, adding, a number of steps have been taken in the budget for these sectors.
In this regard, he said , volume of agriculture loans had been increased to Rs 600 billion while a number of steps have been taken to increase agriculture produce that include reduction in pries of fertilizers, unit price of agriculture tube-wells, reduction in taxes on pesticides etc.
Dar rejected the impression that government was not focusing on hydel power generation and said that Rs 32 billion had been allocated for Diamir Bhasha dam in the new budget while Rs 42 billion had been allocated for Dassu, Rs 61 billion for Nelum Jehlum and Rs 16.5 billion for Tarbeal Extension- 4 projects.
Talking about fiscal responsibility, the minister said that debt to GDP ratio has been reduced from 66.5 percent to 63.6 percent which would be further reduced to 60 percent during the next two years.
He said that the government was strengthening the fiscal discipline adding that the budget deficit would be reduced to 3.5 percent during the current year. Regarding the supplementary grant, he said that Constitution allows provisions of such grants.
He said that reform process has been introduced in public sector entities to make them profitable adding that the privatization of PIA and State life Insurance Corporation has been initiated.
The minister said that the performance of the Pakistan Railways has improved adding that for ensuring transparency the government has prepared a report on the financial performance of different institutions to bring about betterment in those organizations.
He said that the government has considered the recommendation for enhancing salary of the government adding in addition to already announced merger of ad-hoc, the ad-hoc relief of 2015-16 would also be merged in the basic salary and then ten percent increase would be given.
In total, it would have about 13 percent increase on the salary of employees. He said that the accommodation ceiling for armed forces has also been increased.