External debt up 200 per cent in first quarter as govt borrows $5.45 billion

ISLAMABAD: Figures on the federal government’s borrowing have come to light. According to the document, external debt rose by 200 per cent in the first three months of the current financial year.

From July to September, external loans of $5.4496 billion were taken. This is $3.63 billion more than in the same period of the last financial year. In the first quarter of the last financial year, Pakistan had borrowed $1.81 billion in external loans.

According to the Economic Affairs Division, Pakistan borrowed $2.94 billion through global bonds. External loans of $942.7 million were received under the Naya Pakistan Certificates, while $300 million was borrowed from foreign commercial banks.

During the period under review, $894.1 million was received from international institutions and $58.1 million from various countries. The World Bank gave a loan of $359 million and the Asian Development Bank (ADB) $153.5 million.

According to the document, external loans equivalent to Rs1,515 billion were taken in the first three months. This is more than Rs1,000 billion above the borrowing in the last financial year.

According to the Economic Affairs Division, the external borrowing includes more than Rs1,260 billion in non-project loans, while Rs254.8 billion was received as project loans for various projects.