Cash-strapped Pakistan has broken all previous records in borrowing money from outside sources. (Photo Credit: File Photo)
Cash-strapped Pakistan has broken all previous records in borrowing money from outside sources. During Imran Khan’s one-year regime an increase of Rs 7,509 billion (Pakistani currency) was recorded in the total debt of Pakistan. Between August 2018 and August 2019, the government has borrowed Rs 2,804 billion from foreign sources and Rs 4,705 billion from domestic sources, the report in Pakistan media said.
According to the State Bank of Pakistan data, a 1.43 per cent surge was noticed in the public debt of Pakistan in merely first two months of the current fiscal year. The debt of the federal government has reached to Rs 32,240 billion that was Rs 24,732 billion in August last year.
The government’s tax collection in the first quarter of the current fiscal was Rs 960 billion while the target was Rs 1 trillion, the report added.
Pakistan had approached the IMF in August 2018 for a bailout package after the Imran Khan government took over. The IMF approved a 39-month USD 6 billion loan for Pakistan with tough conditions to address its balance of payment crisis and help the country's ailing economy return to "sustainable growth".
The USD 6 billion financial aid includes an immediate disbursement of USD 1 billion to help Pakistan address its balance of payment crisis.The latest deal is the 22nd bailout package since Pakistan became a member of the IMF in 1950.Pakistan has so far received billions in financial aid packages from friendly countries like China, Saudi Arabia and the UAE during the current fiscal year.
Earlier, China gave USD 4.6 billion in shape of deposits and commercial loans and Saudi Arabia provided USD 3 billion cash deposit and USD 3.2 billion oil facility on deferred payments. The United Arab Emirates also provided USD 2 billion cash deposit.