PTI government incurred loans and grants worth $40 billions, repaid $30 billion debts
The PTI government has incurred $39.7 billion in foreign loans and grants during its tenure of 40 months.
The Ministry of Economic Affairs Division has compiled its performance report under the PTI regime in this regard. The PTI government has availed $39.7 billion loan and grants from August 2018 to November 2021 from external sources.
On the other hand, the report states that the PTI government has paid $29.815 billion as external debt servicing from August 2018 to October 2021. Repayments data for November could not be included in the report.
The net inflow was $8.042 billion in 39-months (August 18 to November 21), which was $2.474 billion per year on average. The official said that the PML-N government had taken $49.762 billion as foreign loans and repaid $27.071 billion as debt servicing during the five-year tenure. Thus, the net inflow was $22.691 billion during the 5-years (4.538 billion/year on average).
The report shows that the country received $38.86 billion in external loans and grants from August 2018 to October 2021 during the tenure of the current regime. The government received $13.762 billion from multilateral banks including, World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, and Islamic Development Bank.
It took loans and grants of $13.365 billion from Foreign Commercial Banks during the 39 months. The report shows that the main reliance of the PTI government for external borrowing remains on multilateral and commercial banks.
The government has received $3.87 billion from bilateral resources (foreign governments), including a $0.693 billion grant and a $3.174 billion loan. Pakistan also received $3.327 billion from International Monetary Fund (IMF), $3.542 billion from Bonds, and $1 billion from Safe Deposits from a friendly country.
During the period, the PTI government has taken $37.757 billion in loans and $1.007 billion in grants. The country received $693 million in grants from bilateral resources, $272 million from multilateral resources, and $43 million from Bonds. The IMF and Foreign Commercial Banks did not give any grants during the last 39 months.
According to the report, the foreign loan and grants were obtained to bridge the fiscal deficit, repayment of external payments, and liabilities, including debt servicing and meeting the development needs of the country.
It was further informed that the PML-N government had received $49.762 billion as foreign loans and repaid only $27.071 billion as debt servicing. Thus, the net inflow was $22.691 billion during the 5-years (4.538 billion/year on average). As compared to debt servicing of $27.071 billion from July 2013 to June 2018 ($5.414 billion/year on average) by the previous government, the present government inherited a historic high level of debt 18 servicing.
As a result of this, the present government had to pay $29.815 billion from August 2018 to October 2021 ($9.174 billion/year on average) on account of external debt servicing, including principal and interest.