*ISLAMABAD:* The Federal government will borrow $11.6 billion from externalsources in the next fiscal year 2018-19. Government will collect loansworth of $11.6 billion from external sources such as from bilateral,multilateral, Eurobond and commercial banks.

“Total inflows of external financing are expected to be $11.6 billionduring 2018-19 with project loans of $4.8billion and programmer loans of$1.8 billion” document stated.

The country will take about $3.1 billion from countries like Germany,China, Japan, America, Saudi Arabia and others and $3.5 billion frommultilateral sources. The government is estimated to collect $3 billionfrom raising bond and $2 billion from commercial banks.

The government will adhere to the policy of fiscal consolidation during2018-19 to maintain the fiscal deficit within manageable limits and withinthe ceilings of Fiscal Responsibility and Debt Limitation Act (FRDLA),2005. The Federal Board of Revenue (FBR) will continue its tax reformprogramme for broadening the tax net and reforming the tax administration.The debt management functions will be primarily focused on fulfilling thefinancing needs at lowest possible costs consistent with a prudent degreeof risks, broadening the investor base and a well-functioning domestic debtcapital market, lengthening the maturity profile of domestic debt, andmobilization of maximum available soft external financing.

The annual plan 2018-19 indicates that Pakistan’s gross public debt stockas on December 31, 2017, stood at Rs22,821 billion registering a growth of6.6 per cent over the debt stock as on June 30, 2017. The built-up publicdebt was because of both domestic and external debts which grew by 4 percent and 12.6 per cent, respectively. Net government debt stood at Rs20,879 billion during the same period, posting a growth of 6.3 per cent. Thegross public debt was 67 per cent during 2017 which was slightly below theprevious year’s level of 67.7 per cent.