PTI government from 2018 to October 2021
- Received US$ 38.8 billion as foreign loans
- Repaid US$ 29.815 billion as debt servicing
- Net inflow US$ 8.042 billion
PML-N government from July 2013 to June 2018
- Received US$ 49.762 billion as foreign loans
- Repaid US$ 27.071 billion as debt servicing
- Net inflow US$ 22.691 billion
By Mati Ullah Khan
ISLAMABAD, Pakistan: The government of Pakistan has received US$ 38.8 billion as foreign loans and paid back US$ 29.815 billion from August 2018 to October 2021, the National Assembly was informed on Thursday.
In a written reply to a question by Ms. Shaza Fatima Khawaja, the Minister for Economic Affairs Omar Ayub Khan told the House that from August 1, 2018 to October 31, 2021, the government of Pakistan received a total of US$ 38.8 billion in the form of foreign loans and grants.
The summary of foreign loans and grants is as under:
The minister apprised the House that foreign loans and grants are obtained to bridge the financing gap (fiscal deficit) and meet the development needs of the federal & provincial governments.
Similarly, foreign inflows are also used to meet the external payments & liabilities including debt servicing.
Omar Ayub also told that against receipt of US$ 37.857 billion foreign loans, the government of Pakistan paid US$ 29.815 billion as external debt servicing including principal & interest payments from August 2018 to October 2021. Thus, the net inflow is only US$ 8.042 billion in 39-months (US$ 2.474 billion/year on average).
Whereas during the period of July 2013 to June 2018 (5-years), the government of Pakistan received US$ 49.762 billion as foreign loans and repaid US$ 27.071 billion as debt servicing. Thus, the net inflow was US$ 22.691 billion during the 5-years (4.538 billion/year on average).
Also Read: Pakistan’s key economic indicators for FY 2022
The minister said that as compared to debt servicing of US$ 27.071 billion from July 2013 to June 2018 (US$ 5.414 billion/year on average) by the previous government, the present government inherited a historic high level of debt servicing.
As a result of this, the present government had to pay US$ 29.815 billion from August 2018 to October 2021 (US$ 9.174 billion/year on average) on account of external debt servicing including principal and interest, he said.
