Government to borrow Rs2.74 trillion in FY21-22

Rs496 billion to come from IMF, Rs560 billion to be raised by floating Euro Bond and International Sukuk, whereas Rs779 billion will be loaned from commercial banks

ISLAMABAD: The federal government has planned to borrow Rs2.747 trillion (over $16 billion) gross foreign loans in the next fiscal year to finance the budget deficit and for repayment of external public debt.

This would be an increase of 18 per cent from the last year when the government borrowed Rs2.286 trillion.

According to the budget documents, the government would also be receiving Rs496 billion ($3.165 billion) from the International Monetary Fund (IMF) during the next financial year. However, the figures may change in light of ongoing discussions with the international lending agency.

According to the budget document, the government has also estimated to receive Rs560 billion ($3.5 billion) by floating Euro Bond/International Sukuk in the next fiscal year, as compared to Rs402.5 billion ($2.5 billion) of the outgoing fiscal year.

Article continues after this advertisement

The government also estimates to get Rs779.2 billion ($4.97 billion) from commercial banks in FY 2021-22 as compared to Rs762.3 billion ($4.8 billion) in FY 2020-21. Besides, the Ministry of Finance (MoF) also estimates receiving a loan worth Rs160 billion ($1.0 billion) from Islamic Development Bank (IDB), as compared to Rs128.8 billion it received from the bank in this fiscal year.

The total external receipts also include the project loans and grants outside PSDP which are estimated to be Rs22.817 billion in the next fiscal year as compared to Rs57.859 billion of the outgoing year.

As per the documents, Pakistan has not estimated any new short-term loan from Saudi Arabia. It has also not shown any receipt on account of Chinese safe deposits.

 

- Advertisement -
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Must Read

IMF seeks closure of public entities’ bank accounts under TSA-1

Stressing the importance of the implementation of the Treasury Single Account (TSA)-1, the International Monetary Fund (IMF) has placed a condition on Pakistan to...