Pakistan's foreign debt reaching Rs9 trillion

Published: September 21, 2010
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He said that all the institutes are being run on subsidies.

He said that all the institutes are being run on subsidies.

Finance secretary Salman Sadiq has said that the foreign debt of the country is reaching Rs9 trillion and the interest of this debt is being paid with the new loans.

Explaining the audit objections raised in the public accounts committee regarding financial accounts of finance ministry in 2007-2008, the finance secretary showed his anger over the out-of-budget expenditures in the finance ministry.

He said that all the institutes are being run on subsidies and none of the institutions have the ability to meet their own expenditures.

He said the government is providing an annual subsidy of Rs400 billion to different ministries and institutes. The grant for PEPCO has exceeded Rs183 billion annually.

Acting chairperson of the public accounts committee, Yasmin Rehman said that the unnecessary expenditures increased despite monitoring.

Military accountant General Azam Khan said that the national treasury is facing an additional burden of Rs14 billion due to 12 per cent increase in military pensions in 2007-2008.

PAC formed a new committee to regulate the financial management in future.

This article has been revised to reflect the following correction:

Correction: September 21, 2010

Due to a reporting error, the foreign debt figure was wrongly cited as Rs90 trillion.

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Reader Comments (17)

  • Aristo
    Sep 21, 2010 - 2:32PM

    A country immersed in loans and interest is very conveniently called The Islamic Republic Of Pakistan. How can Islam and interest go together, what a confused state of affairs of our nation.Recommend

  • Sep 21, 2010 - 2:41PM

    Great! A nuclear power indeed! The whole nation is being financed and refinanced by foreign funding and then they have the audacity to prance around the globe acting all high and mightyRecommend

  • sam mandi
    Sep 21, 2010 - 5:48PM

    On a side note: Pakistan’s politicians are richer by 3 times in last 6 years.Recommend

  • Ali Farooqui
    Sep 21, 2010 - 6:18PM

    that is 5 carore 75 lakh rs per head, 5750000 per head Recommend

  • Sep 21, 2010 - 6:44PM

    It’s no surprise. If you spend the excheaquer’s money on party workers who were laid off afrter the removal of the second benazir government and paid them fourteen years salary plus back-dated promotions, such financial position is no surprise. The present rulers are not bothered about the country. They only want to strengthen their vote bank.Recommend

  • Ghazanfar Ahmed
    Sep 21, 2010 - 6:44PM

    90 trillion rupees equals over one trillion dollars. Pakistan’s foreign or domestic debt does not equal or add up to one trillion dollars. Please fact check your stories before publishing them. Recommend

  • Omar Yousaf
    Sep 21, 2010 - 8:21PM

    this is RIDICULOUS…. what kind of people proof read these articles….90 trillion is obviously a wrong number… it translates into more than 1 trillion dollars… our total revenue tax receipts are 1.8 trillion… the IMF loan in the past few years is to the tune of 8-10 billion dollars… the news organization should apologize for this… on 2nd i hope salman sadiq say 90 trillion…???Recommend

  • Omar Yousaf
    Sep 21, 2010 - 8:22PM

    this is RIDICULOUS…. what kind of people proof read these articles….90 trillion is obviously a wrong number… it translates into more than 1 trillion dollars… our total revenue tax receipts are 1.8 trillion… the IMF loan in the past few years is to the tune of 8-10 billion dollars… the news organization should apologize for this… on 2nd thought i hope salman sadiq didnt say 90 trillion…!!!Recommend

  • Isfand
    Sep 21, 2010 - 8:34PM

    Btw the article seems wrong to me,only recently external debt was 56 billion $ which is around 4,7 trillion rs how it can go in some months from nearly 5 trillion rs to 90 trillion rs??
    Even if we add the pubblic debt of the country which is 56%of the gdp so around 7 triilion and half, the total debt of the country will be a lttle bit more than 12 trillion rs ………….i think there have been some mistakes in writing of the article………

    Author can you plz rely?it will clearify my doubts
    ThanksRecommend

  • Isfand
    Sep 21, 2010 - 8:35PM

    @Ariosto,Syed Nadir El-Edroos well said

    our name should be

    The Hypocritical Islamic Repubblic of PakistanRecommend

  • Isfand
    Sep 21, 2010 - 8:36PM

    no more need now ive read the correctionsRecommend

  • Anoop
    Sep 21, 2010 - 9:12PM

    China will always be there. Or, will they? Considering the amount they gave for recent floods I would’nt have much hope. Even India gave more than them. Recommend

  • Shahryar Ahmed
    Sep 22, 2010 - 2:45PM

    Between 2000-2007 we were paying back & out of the IMF program…..

    Now 2008 onwards accumulating loans to pay out for loans….

    Wow what a progression……

    Thank You, Free Media, Independent Judiciary, Incorruptible & Hardworking Politicians Leader’s, Honest & respectable Lawyers community……Thank you for our present & future (if any).

    All Hail Democracy!!!!!!!!Recommend

  • Copper
    Sep 22, 2010 - 6:35PM

    On a side note: PAC is informed 70 billion are spent on pension of retiren army men and 20 billion on all retired civil servants. And army pension is not included in defence budgetRecommend

  • Meekal Ahmed
    Sep 23, 2010 - 12:58AM

    Whatever the true number, the FS needs to be held accountable too for having screwed up fiscal operations and missed every target the government itself has set for itself in the context of the IMF program.

    I have lost count of waivers requested and given. This is not the way to run an economy because fiscal slippages are the root cause of recurrent bouts of macroeconomoic instability, high debt levels, excessive bank borrowing, a crowding-out of the private sector, inflation and a fragile external position.

    That where it all starts and that is where it needs to stop.

    So Mr FS, fix your own house first. Recommend

  • Sameen Farrukh
    Sep 23, 2010 - 9:39PM

    Pakistans economy has mostly been dependent on foriegn debt.Now its time we be less dependent on debts by ensuring our revenue in such a way that no need arises for foriegn debts in near future.Recommend

  • Saeed Islahi
    Oct 9, 2010 - 4:56PM

    It is easy to walk into debt but difficult to crawl out of it.As a self respecting people we must not burden our childern with unbearable sufferings on this account.Instead we should concentrate on recovering illgotten moneys both here and abroad from our business and political leaders,generals etc-rather than extending our begging hands to others in most shameful manner.Recommend

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