The Finance Ministry has said that government institutions have incurred aloss of Rs 1,014 billion in the last two years.
A Senate meeting was held under the chairmanship of Sadiq Sanjarani onFriday in which during Question Hour, the Ministry of Finance presented thedetails of deficits of government institutions in the last two years.
The Ministry of Finance said in a written reply that during the two years,the loss to government institutions was more than Rs 1,014bn, in thefinancial year 2017-18 the loss was 563.28bn, in 2018/19 Rs 450.84bn ofloss was incurred.
Last year, however, the overall deficit of state-owned enterprises fell by20%.
Presenting the details of the institutions included in the government’sprivatization list in the House, the Finance Ministry said that 19institutions are included in the privatization list and the process ofprivatization of 14 government institutions is underway. These includeBalloki Power Plant, Haveli Bahadur Shah Plant, SME Bank, First Women’sBank, Service International Hotel, Roosevelt Hotel, State Life InsuranceCorporation, Steel Mills, Heavy Electric Complex, Jinnah Convention, andOil & Gas organizations.
Giving details of the losses to the national economy from the coronaviruspandemic, the Finance Ministry said that due to Corona, the rate of GDPfell from 2.4pc to negative 0.4pc. The budget deficit also increased by onepercent to 8.1pc instead of 7.5pc. Whereas Pakistan’s export target alsofell and the FBR lost Rs 809 billion in tax revenue.
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Presenting the details of the loan taken from international financialinstitutions under the economic reforms, the Ministry of Finance said thatthe government borrowed more than $10 billion. From the World Bank, thegovernment has borrowed $4.11bn for 21 government agencies.
The senate was told that $3.66bn was borrowed from the Asian DevelopmentBank (ADB), $1.68bn were borrowed from the Islamic Development Bank and$800 million were borrowed from the Asian Infrastructure InvestmentDevelopment Bank.
About the IMF loan, the House was informed that the interest rate on theloan taken from the IMF is 4.05pc, the finance ministry said. The IMF loanrepayment process will begin in 2024 and continue until 2032. The currentgovernment has signed 21 agreements with the World Bank and 22 with theAsian Development Bank.
The government signed 58 agreements with international financialinstitutions to reform public institutions.
