Pakistan owes Rs71.2 trillion to creditors, NA told

ISLAMABAD: Federal Minister For Finance and Revenue Muhammad Aurangzeb Friday told the National Assembly that as of end June 2024, the total debt of the country was Rs71.2 trillion of which Rs47.3 trillion (66 percent) was domestic debt and Rs24.1 trillion (34 percent) was foreign debt.

In a written reply to a question of Dr Nafisa Shah, who asked the details of domestic debt undertaken by the government, the finance minister said that the domestic borrowing is carried out through issuance of government securities (T-Bills, Pakistan Investment Bonds, Sukuk etc) and National Saving Schemes.

He further said that the external borrowing is mainly obtained from multilateral and bilateral development partners and commercial sources which include bank loans and Eurobonds.He said over the medium-term, the strategy is to reduce the burden to a sustainable level by taking fiscal consolidation measures, including revenue mobilisation and expenditure rationalisation. “These measures are expected to generate primary surpluses that will reduce the need for borrowing as public debt is mainly obtained of the fiscal deficit.”

In addition, the government aims to promote measures that support higher long-term economic growth and efficient/ productive utilisation of debt.Separately, in a written reply to the question of Shezra Mansab Ali Khan Kharal, Minister for Economic Affairs Ahad Khan Cheema told the National Assembly that the international donors pledged a total of $10.987 billion in the international conference on Climate Resilient Pakistan held in Geneva last year on January 9, 2023.

The written reply stated that out of total pledges, $10.44 billion was loan and $546.49 million was grant.The donors were Australia, France, European Union, South Korea, the USA, United Kingdom, Denmark, Italy, Germany, Japan, Norway, Canada, China, Kingdom of Saudi Arabia, Vietnam, Azerbaijan, Qatar, and international financial institutions such as ADB, AIIB, ISDB and WB.

He said that the Ministry of Economic Affairs is mandated for assessment of requirements, programming and negotiations for economic assistance from foreign governments and organisations. “Utilisation and execution of projects is beyond the mandate of the Ministry of Economic Affairs,” he added.

Meanwhile, Minister for Planning and Development Ahsan Iqbal told the National Assembly that over the past 10-years, the CPEC achieved numerous milestones with completion of 37 projects worth over $25 billion.

In a written reply to a question of Dr Nafisa Shah, who sought the detail of the present status of China Pakistan Economic Corridor (CPEC) in Pakistan, the minister stated that the completed projects include 16 projects in energy sector worth around $16 billion, seven projects in infrastructure sectors whereas other completed projects are related to Gwadar Port and socio-economic development.

The planning and development minister further stated that the currently, 21 projects are under development in various sectors across the country while a number of the projects fall under the category of pipeline projects which are at various stages of negotiation with Chinese side and are expected to be developed under the framework of CPEC.