Government mulling to contact IMF to overcome fiscal issues

ISLAMABAD: Contrary to its tall claims, the government once again is pondering to contact International Monetary Fund (IMF) to gain loan to resolve fiscal issues.

Sources told that federal government took loans worth Rs 74 billion during the last two months from different banks and overall it took loans of $ 5.4 billion during the running fiscal year while the acquire loan is a record in the history of the country.

The documents revealed that government took over Rs 26.53 billion from Citi bank, AIIB Rs 8.36 billion, IBRD over Rs 450 million, IDA over Rs 6.38 billion, IDB (ST) over Rs 8..91 billion, IFAD over Rs 190 million, CPEC fund over Rs 370 million, China over Rs 10.59 billion, France over Rs 20 million, USA over Rs 1.39 billion, Germany over Rs705 million, Kuwait over Rs136.4 million, United Kingdom over Rs 5.61 billion and overall loans over Rs 74.75 billion during the last two months. Out of the said amount, Rs 8.24 billion is acquired in shape of grant.

On the other hand, the government has to repay $ 1.18 billion additional loans as compared to previous year. The government has to pay $ 750 million to U.S, $ 500 million to China, and $ 650 million to Paris and the international loan is $ 1.55 billion. According to State Bank of Pakistan, the government has to pay $ 1.11 billion on bonds, $ 550 million commercial loans and has an overall $ 83 foreign debt while the national debt is over $ 25 billion.

Sources said that government took loans on a massive level to increase its assets while it has decided to contact IMF to resolve fiscal issues. It is worth to mention that government had claimed that economic policies are robust and there was no need to approach IMF.