Pakistan borrowed USD 10.40 billion during PM Khan’s innings: Report

Islamabad, December 5

The cash-strapped Pakistan government of Prime Minister Imran Khan borrowed USD 10.40 billion as loans from friendly countries like China and the UAE to stabilise the foreign exchange reserves and repayment of old loans, a media report said on Thursday.

Pakistan has been facing a serious economic crisis with short supplies of foreign currency reserves and stagnating growth.

Since assuming power in last August, Prime Minister Khan has been appealing to close allies to provide concessional loans to reduce the size of the bailout package that Pakistan may need from the IMF.

The Economic Affairs Division, in a reply submitted in the National Assembly, the lower House, said the loans borrowed in the government included bilateral, multilateral and commercial loans, ARY News reported.

According to the figures, the Pakistan Tehreek-e-Insaf (PTI) government led by Prime Minister Khan borrowed commercial loans from Chinese, UAE and European banks. A total of USD 4.80 billion was borrowed as loans from the commercial banks.

Pakistan has borrowed USD 4.550154 billion in the current fiscal year 2018-19 till now, the finance ministry informed the Senate, the upper House.

The International Monetary Fund (IMF) has agreed to provide a USD 6 billion bailout package to Pakistan to avert an economic crisis.

Moreover, China, United Arab Emirates and Qatar provided direct deposits to Pakistan, the report said.

In May, the Ministry of Finance informed the Senate that Pakistan’s foreign debt has reached USD 88.199 billion.

The country borrowed USD 26.19 billion in past six financial years apart of USD 7.32 billion interest, which enhanced the overall foreign debt in past six years to USD 33.50, the ministry said.

Pakistan borrowed USD 6.90897 billion in fiscal year 2013-14, USD 5.40721 billion in fiscal year 2014-15 and USD 4.45020 billion in financial year 2015-16, the finance ministry said in its answer.

Pakistan’s borrowing from foreign sources remained USD 6.520381 billion in fiscal year 2016-17, while in year 2017-18 the country borrowed USD 6.020526 billion from foreign sources, the ministry added.

While agreeing to the bailout package to Pakistan in May, the IMF said the country faces a “challenging economic environment, with lacklustre growth, elevated inflation, high indebtedness, and a weak external position”.

The IMF said the funding programme would support the authorities’ strategy for stronger growth by “improving the business environment, strengthening institutions, increasing transparency, and protecting social spending”. — PTI