'$9.2b in foreign loans to be retired this year'
State minister says $37b worth of foreign loans to be paid during the next five years
A file photo of the Senate's session. PHOTO: PHOTO: APP
ISLAMABAD:
The finance ministry has informed the Senate that of the total $88.19 billion in foreign loans, $9.2 billion will be retired this year.
During the question hour, Minister of State for Finance and Revenue Hammad Azhar said $37 billion worth of foreign loans would be retired during the next five years.
Giving details, the minister said some $3,256 million under foreign debt and $1,295.21 million interest on loans had been paid back during the current fiscal year till January 31, 2019.
Azhar said, “The previous government, during its five-year tenure, had obtained loans on a very short term.”
He said the present government was committed to fully discharge the debt obligations of the country to its external creditors and a multi-pronged strategy was being pursued.
Senate panel meeting marred by heated exchange
“The focus is to substantially increase the country's exports and workers remittances and reduce imports,” he said, expressing hope that this year, the country would receive $22 billion in remittances from overseas Pakistani.
The country's export was also expected to reach $25 billion during the said period, he said, adding that the government was also focusing on enhancing domestic revenues, reducing expenditure to bring down budget deficit as well as current account deficit.
To another question, the minister said the process to seek membership of Egmont Group was initiated on September 21, 2011 after the approval of the federal cabinet.
At present, Onsite Assessment Report (OAR) from FinCEN (FIU of USA) and JAFIC (FIU of Japan) was still awaited which described findings of Onsite visit to Pakistan (January 29, 2018 to February 02, 2018), he said.
He said the government was vigorously following-up to expedite the process of Egmont Group membership. “After getting membership of Egmont Group, we will also get data,” he added.
Azhar also informed the Senate that the inflation (CPI) in July-March of FY2019, remained at 6.8 per cent which was within the single digit range. The minister pointed out that the increase in the price level was due to rising international oil prices and rupee depreciation.
He said the government was cognisant of this challenge and was following prudent expenditure management and contractionary monetary policy to anchor expected rise in inflation.
He said, “To anchor expected rise in inflation, State Bank has also further raised the policy rate to 10.75 per cent effective from April 1, to compress the aggregate demand in the economy.”
He said, “Ramazan Bazaars have been set up in various areas to provide relief to the masses.”
To another question, the minister said the preceding year witnessed a growth of 5.22 per cent but broadly it was led by consumption.
The finance ministry has informed the Senate that of the total $88.19 billion in foreign loans, $9.2 billion will be retired this year.
During the question hour, Minister of State for Finance and Revenue Hammad Azhar said $37 billion worth of foreign loans would be retired during the next five years.
Giving details, the minister said some $3,256 million under foreign debt and $1,295.21 million interest on loans had been paid back during the current fiscal year till January 31, 2019.
Azhar said, “The previous government, during its five-year tenure, had obtained loans on a very short term.”
He said the present government was committed to fully discharge the debt obligations of the country to its external creditors and a multi-pronged strategy was being pursued.
Senate panel meeting marred by heated exchange
“The focus is to substantially increase the country's exports and workers remittances and reduce imports,” he said, expressing hope that this year, the country would receive $22 billion in remittances from overseas Pakistani.
The country's export was also expected to reach $25 billion during the said period, he said, adding that the government was also focusing on enhancing domestic revenues, reducing expenditure to bring down budget deficit as well as current account deficit.
To another question, the minister said the process to seek membership of Egmont Group was initiated on September 21, 2011 after the approval of the federal cabinet.
At present, Onsite Assessment Report (OAR) from FinCEN (FIU of USA) and JAFIC (FIU of Japan) was still awaited which described findings of Onsite visit to Pakistan (January 29, 2018 to February 02, 2018), he said.
He said the government was vigorously following-up to expedite the process of Egmont Group membership. “After getting membership of Egmont Group, we will also get data,” he added.
Azhar also informed the Senate that the inflation (CPI) in July-March of FY2019, remained at 6.8 per cent which was within the single digit range. The minister pointed out that the increase in the price level was due to rising international oil prices and rupee depreciation.
He said the government was cognisant of this challenge and was following prudent expenditure management and contractionary monetary policy to anchor expected rise in inflation.
He said, “To anchor expected rise in inflation, State Bank has also further raised the policy rate to 10.75 per cent effective from April 1, to compress the aggregate demand in the economy.”
He said, “Ramazan Bazaars have been set up in various areas to provide relief to the masses.”
To another question, the minister said the preceding year witnessed a growth of 5.22 per cent but broadly it was led by consumption.