Finance Minister Ishaq Dar. PHOTO: AFP
Speaking during a cabinet meeting in Islamabad, Dar said the circular debt amounted to Rs480 billion when he took charge as finance minister.
According to the data provided by him, the government’s source of funding for debt payment was:
• Pakistan Investment Bonds – Rs128 billion
• Expenditure savings – Rs135 billion
• Dividends recovered from Public Sector Enterprises – Rs20 billion
• Cash paid from Federal Consolidated Fund – Rs59 billion
• Recovery of payables to federal government from Public Sector Enterprises – Rs138 billion
The government was also accused of printing new notes in order to pay off the debt in 45 days - a practise which increases inflation.
Dar said that the details of who received money as a result of circular debt payment can be found on the ministry’s website. “Our government believes in transparency and we have all the information put up online,” he said.
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As a trained economist (who has a good understanding of government finances and firm accounts), I can tell you some of these claims are total bogus. They obviously printed more notes to pay the circular debt. If so much money was so easily producible, dont you think Zardari would have gotten his claws on it already?
i know that this time N league will not be doing corruption and Ishaq Dar and Ahsan Iqbal are the only ones who can save them these 5 years eg Rs 100 billion fund for youth is one example. But today I was surprised to hear the explanation given by Kh Asif to Hamid Mir about increase in USD against PKR that former has also increased against Euro and Swiss franc?? An interest free system can be that these loans be given in USD and returned in USD ie a dollar for a dollar. try it. PIB bonds are providing interest to financial institutions. One day we have to return this principal. Now we have again this fund swelling to Rs 450 billion.
@Dhaka...please keep your feet on the ground
@Khurram: @Dhaka: getting aid from Bangladesh??..This is a LOL moment of the day
This is no laughing matter son. Just shows how desperate Pakistan is and how big are the bellies of the current lot of politicians in the current regime.
@Dhaka: getting aid from Bangladesh??..This is a LOL moment of the day
This is an excellent display of financial prudence. We hope that the economy will be successfully steered out of the crisis by the PMLN Government.
He is trying to create good relation with us, so that his country can get financial aid from us.
Just like a true chartered accountant, busy is hiding the true numbers and providing false numbers and justifications to show how wonderfully he is managing the economy.