ISLAMABAD: In the last five years between 2013 and 2018, a huge amount of $37 billion has been borrowed from foreign countries to sustain the economy.
Information compiled by Pakistan Today shows that the incumbent government took $6.6 billion in the first year 2013-14, $5.6 billion in 2014-15, $7.3 billion in 2015-16, $10.5 billion in 2016-17, and $7.6 billion from multilateral and bilateral institutions in the first 56 months.
Moreover, the government has taken $7.9 billion from the consortium of commercial banks. The data indicate that the government has taken $4.3 billion in the last fiscal year 2017-18, whereas $322 million, $50 million, $1.3 billion were received during 2013 to 2016.
The government took $1.7 billion from commercial banks in the first eight months of the current fiscal year.
Meanwhile, Pakistan has taken $6.9 billion from raising bonds in the international market. The present government received $1.9 billion in 2013-14, $1 billion in 2014-15, $500 million in 2015-16, $1 billion in 2016-17, and $2.5 billion in the current fiscal year.
In addition to this, the government borrowed $5.2 billion from China in this period. Data indicate that Pakistan’s dependence on China has increased manifold. In the first year of the present government, it obtained $516 million, $1.02 billion in 2014-15, $976 million in 2015-16, $1.5 billion in 2016-17, and $1.1 billion in the ongoing year.
It is worth mentioning here that the Ministry of Finance has surpassed the budget estimates thrice. The Ministry of Finance estimated to get $5.7 billion in 2013-14 but it had taken $6.6 billion in loans and grants.
Similarly, Pakistan borrowed $10.5 billion in 2016-17 against the budget estimate of $7.9 billion. In the current fiscal year 2017-18, MoF estimated to get $8.04 billion, and so far it has taken $7.6 billion.
The data revealed that the Asian Development Bank (ADB) and other donors are providing loans to pakistan but there is no substantial progress in the Jamshoro Power Generation project, Flood Emergency Reconstructions, and Garment Technology Center Karachi.
Data revealed that Pakistan borrowed loans against the energy, infrastructure, and social sector programs.
According to a State Bank of Pakistan (SBP) report, the country’s external debt and liabilities have reached almost $89 billion. Economic experts warned that the external debt of Pakistan grow to $110 billion within three years and it will need over $22 billion a year just to meet external payment requirements.
