The domestic and foreign debt markup will swallow Rs3.9 trillion out of the total budget outlay during the next financial year 2022-23 while the country’s interest payments on foreign and domestic debt would further go up due to higher loans.
According to budget documents, the federal government has projected that it will spend 3.95 trillion on mark-up payments on domestic and foreign debt in the upcoming fiscal year.
Previously, the government had allocated Rs3.059 trillion on mark-up payments on domestic and foreign debt for the ongoing fiscal year.
However, actual payments swelled to Rs3.143 trillion on mark-up payments on domestic and foreign debt during the ongoing fiscal according to revised estimates.
Of the Rs3.95 trillion earmarked for interest payments on domestic and foreign loans, Rs3.43 trillion will be mark-up on domestic debt and Rs510.97 billion on foreign debt during the next financial year.
For the outgoing year, Rs3.05 trillion was earmarked to pay mark-up on foreign and domestic loans, but the target was later revised upwards to Rs3.14 trillion.
As per budget documents, external receipts for fiscal year 2022-23 have been projected at Rs3.12 trillion. The government has projected Rs269.2 billion in project loans and Rs722.3 billion in programme loans.
The government had anticipated an inflow of Rs2.69 trillion in external loans in the outgoing financial year, but now according to revised estimates it expected receipts of Rs2.96 trillion.
The government had projected project loans of Rs259.94 billion. However, it hopes to receive Rs245.016 billion during the ongoing financial year.
It had projected program loans of Rs438.19 billion. However, it hopes to receive Rs1466 billion during the ongoing financial year.
The government had projected Rs496 billion in International Monetary Funds (IMF) loan for budgetary support in financial year 2021-22. However, Pakistan had not received so far and there is no projection for the next fiscal year.
Pakistan had not projected to receive any amount from Saudi Arabia on account of deferred oil payment facility in the ongoing financial year.
However, it had projected now Rs70 billion oil deferred payment facility for ongoing fiscal year and Rs 148.8 billion worth oil on deferred payment for the next financial year 2022-23.
From the Islamic Development Bank, the government had estimated receipt of Rs160 billion in the outgoing year, against which it received Rs232.2 billion. Pakistan expects Rs 223.2 billion during the next financial year.
In the next financial year, Rs372 billion is expected to be raised through the issuance of Sukuk (Islamic bond)/Eurobond.
The government had also expected to generate Rs560 billion to be raised through the issuance of Sukuk (Islamic bond)/Eurobond. It received Rs342.5 billion according to revised budget estimates.
The federal government had also expected to generate Rs779.2 billion from commercial banks in the ongoing financial year. It received Rs821.9 billion according to revised budget estimates. The government expects to receive Rs1389.7 billion in next financial year.
