Govt borrowed $1.5 billion from China from July to April

ISLAMABAD: The government has borrowed $1.5 billion from China in the first ten months of current fiscal year 2018-19.

Documents show that China has given $334 million in loans for the Orange line Lahore project, $691 million for Sukkur Multan, $273 million for Havelian Thakor and $88 million in the recently inaugurated Neelum Jhelum Hydropower project.

Pakistan has overall borrowed $9.1 billion from July to April 2018 on bilateral, multilateral, commercial banks and holding bonds.

Pakistan has taken $1.9 billion loans and grants on bilateral basis, documents indicate the $1.5 billion from China, $16 France, $2.67 million Germany, $59 million Japan, $0.44 million Korea, $2.14 million Kawait and $22.50 million taken from Saudi Arabia.

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Moreover, some countries have also given  grants to Pakistan in first ten months as documents show that Canada have provided $0.16 million grants, Germany $16 million, Japan $26 million, Oman $1.74 million, Saudi Arabia $22.16 million, Turkey $5 million, UK $169 million and USA has given $88 million grants.

The government received $261 million loan and grant in April 2018, the documents indicate.

In addition to this, the government so far received $2.5 billion from raising bonds in international market.

Documents further show that Q block received 2.9 billion from Commercial banks to repay the previous loans. Bank of China has provided $200 million, China Development Bank 1 billion dollar, Citibank $267 million, ICBC-China $1 billion, SCB (London) $200 million and $255 million from Suisse AG, UBL, ABL in first ten months of current fiscal year.

Documents indicate that government borrowed $2.2 billion loan from multilateral sources as ADB has given $681 million, AIIB $23 million, Europe union $5.99million, IBRD $217 million, IDA $252 million, IDB $56 million, IDB (ST) $987 million, IFAD $12 million, OPEC Fund $4 million and UNHCR has so far borrowed $1.07 million to Pakistan from July 2017 to April 2018.

State Bank of Pakistan has recently released the debt number for the period July to March which stated that Pakistan’ debt has recorded 91.8 billion dollar.

Pakistan has borrowed 40.3 billion dollar in the first 60 years from different sources, the Pakistan People Party in their third tenure (2008-2013) added $20.6 billion thus making the total debt to $60.9 billion.

The Pakistan Muslim League Nawaz has made borrowing of around $30 billion in this tenure, the independent economist are furcating that the total debt of Pakistan will reach to $95 billion till June 2018.

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