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Pakistan’s foreign loans cross Rs 9 trillion, NA told

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Published: August 1, 2016 08:12 pm

Loans


ISLAMABAD, August 1, 2016: The National Assembly was informed on Monday that present government obtained foreign loans worth more than nine trillion rupees during last three years. The information was revealed in writing to the National Assembly while responding to a question asked by Naseema Hafiz Penazai of Pakhtunkhwa Milli Awami Party.

She had asked the details of the foreign loans taken by the Government so far to introduce reforms in various departments during the last five years. In its reply, the Finance Minister Ishaq Dar stated that Government of Pakistan had obtained loans from Japan, Asian Development Bank (ADB) World Bank and International Monetary Fund (IMF).

Giving breakdown of the loans, it was submitted that Pakistan borrowed USD 93 million from Japan. Two Loan Agreements were signed between Pakistan and Japan for Energy Sector Reforms Programme during the years 2014 and 2016. A Loan Agreement for Japanese Yen 5 billion (equivalent to US$ 50 million approximately) was signed on June 4, 2014 while another Loan Agreement for Japanese Yen 5 billion (equivalent to US$ 43 million approximately) was signed on February 2, 2016 between Pakistan and Japan.

The main objective of the program is to revamp the energy sector as reliable, sustainable, and affordable through the implementation of the energy sector reform related to three policy areas; managing tariff and subsidy, improving sector performance and opening the market to private sector participation and achieving accountability and transparency. The amount of US$ 50 million (1st tranche) and US$ 43 million (2nd Tranche) was disbursed on June 15, 2014 and February 23, 2016 respectively.

Asian Development Bank has lent more than USD 800million during last three years under four different heads. A loan amounting to US$ 792.16 million was granted under Sustainable Energy Sector Reform Program while Public Sector Enterprises Reforms Project was given a loan amounting to USD 18.7million during 2015.

The World Bank has provided loans amounting to USD two billion to Finance Department during while the International Monitory Fund loaned USD 5.768 billion in this period. However, the government also claimed that during this period $ 4415.2 billion were returned to IMF as repayment.

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