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Govt’s Direct Borrowing is $7.8 Billion, Not $17.6 Billion, Finance Ministry Clarifies

Morpheus

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Govt’s Direct Borrowing is $7.8 Billion, Not $17.6 Billion, Finance Ministry Clarifies

Posted 2 hours ago by Syeda Masooma




The direct borrowing for financing, the government’s fiscal deficit amounted to $7.8 billion from June 30, 2018, to June 30, 2020, said a Ministry of Finance spokesperson. This was given as a clarification on the total borrowing of $17.6 billion previously highlighted in the news reports.
The spokesperson insisted, “The figure needs to be properly interpreted for a better understanding,” he said in a statement.


Out of the total net increase in borrowing, $4.8 billion (27 percent) was done on account of SBP’s foreign exchange liabilities, which excludes it from direct government borrowing, he explained.
موجودہ حکومت نے جون 2018 سے جون 2020 کے دوران بیرونی قرض اور واجبات میں 17.6 بلین$ کے مجموعی اضافہ میں سے 7.8 بلین$(اضافے کا 44٪) قرض لیا۔ موجودہ حکومت کے پہلے 2 سالوں میں یہ اصل قرض تھا۔ pic.twitter.com/PrYDALiYdn
— Ministry of Finance (@FinMinistryPak) October 21, 2020
These external debt and liabilities consist of external public debt, public sector entities’ (PSE) debt, foreign exchange liabilities of SBP, and the private sector’s external debt. The government borrowed $7.8 billion (44 percent of the increase) for the financing of its fiscal deficit.

The total increase in the government’s borrowings amounted to $17.6 billion, while 44 percent of it went towards the financing of fiscal deficit. “This amount was the actual borrowing of the present government during its first two years,” the spokesperson said, adding, “These additional borrowings were from multilateral and bilateral development partners whereas the portion of loans from commercial sources was repaid.”

The private sector borrowed $2.9 billion from external sources, “Which is a healthy sign indicating the private sector’s capacity to borrow from abroad for domestic investments,” the spokesman said. Further explaining this amount, he said that private sector enterprises (PSEs) had borrowed $2.2 billion for spending on their financing needs mostly related to development expenditure.

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Pakistan Space Agency

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Is the PTI Government going to spend rest of it's tenure manipulating debt figures?

Just own up to it.

PTI Government Year-1 (August 2018 - July 2019)
Pakistan borrows record $16b in just one year
(PTI Government borrowed $13.6 billion out of $16 billion)

PTI Government Year-2 (July 2019 -July 2020)
In FY20: Govt gets over $13b in foreign loans

... With the fresh borrowing, Pakistan has received a whopping $29.2 billion in foreign loans in the past two years, including $26.2 billion by the government of Prime Minister Imran Khan since August 2018. ...
 

Norwegian

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Is the PTI Government going to spend rest of it's tenure manipulating debt figures?

Just own up to it.

PTI Government Year-1 (August 2018 - July 2019)
Pakistan borrows record $16b in just one year
(PTI Government borrowed $13.6 billion out of $16 billion)

PTI Government Year-2 (July 2019 -July 2020)
In FY20: Govt gets over $13b in foreign loans

... With the fresh borrowing, Pakistan has received a whopping $29.2 billion in foreign loans in the past two years, including $26.2 billion by the government of Prime Minister Imran Khan since August 2018. ...
Net borrowing still less than last two years of your Khota Biryani govt.
 

TheDarkKnight

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Is the PTI Government going to spend rest of it's tenure manipulating debt figures?

Just own up to it.

PTI Government Year-1 (August 2018 - July 2019)
Pakistan borrows record $16b in just one year
(PTI Government borrowed $13.6 billion out of $16 billion)

PTI Government Year-2 (July 2019 -July 2020)
In FY20: Govt gets over $13b in foreign loans

... With the fresh borrowing, Pakistan has received a whopping $29.2 billion in foreign loans in the past two years, including $26.2 billion by the government of Prime Minister Imran Khan since August 2018. ...
Do you understand the term net borrowing? It is not the act of borrowing a net for a tennis or volleyball court.
In fact, it is the over all increase in total debt after borrowings and repayments:
For example:
If Current total debt: 500 Rs
Now you borrow 300Rs - but you decide to pay 200 Rs back from the old total debt, then new total debt is now: 500 + 300 -200 = 600 Rs
Net borrowing is 600-500= 100Rs That is you added 100 Rs to the total debt in the end.
My naive PMLN friends are just looking at the loans being taken, but not the repayments being done at the same time for the loans and deficits that were left as a gift for this glorious nation by Nawaz Sharif and Zardari.

If you still want to criticize - fine but then use the correct figures and logic. Don't mislead people; in my simple example above it is perfectly fine to say: “why 100 Rs were added to the total debt”
but saying: “Oh no we added 300 Rs to the debt!!” is wrong and misleading - which is what you typically do in your posts.
 
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Pakistan Space Agency

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... My naive PMLN friends are just looking at the loans being taken, but not the repayments being done at the same time for the loans and deficits that were left as a gift for this glorious nation by Nawaz Sharif and Zardari. ...
Every single Government, every single year for the past 7 decades has allocated money in the budget for debt repayment.

Or are you trying to portray this as an achievement by the PTI Government only that it's repaying loans?

How much debt did the previous PML-N Government repay?

An example from October 2017:

... Around half of these $35b loans obtained were used to pay off previous debt from July 2013 to June 2017. During its four-year tenure, the PML-N has added a record $17b to Pakistan’s external debt and liabilities which is a record for any government. ...
 

TheDarkKnight

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Every single Government, every single year for the past 7 decades has allocated money in the budget for debt repayment.

Or are you trying to portray this as an achievement by the PTI Government only that it's repaying loans?

How much debt did the previous PML-N Government repay?

An example from October 2017:

... Around half of these $35b loans obtained were used to pay off previous debt from July 2013 to June 2017. During its four-year tenure, the PML-N has added a record $17b to Pakistan’s external debt and liabilities which is a record for any government. ...
I didn’t say that only PTI govt is repaying loans and previous govts never did. PMLN govt must have re-payed loans as well.
All I am saying is criticize with the right facts and with the right aspects for any govt; inshort: chakma na do bhai!
 

Pakistan Space Agency

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I didn’t say that only PTI govt is repaying loans and previous govts never did. ...
Well, that seems to be the only shor-sharaaba that the PTI Government from the Prime Minister to a PTI chamcha on PDF is making for more than two-years.

"Dekho dekho, Cartoon-e-Azam PM Imran Khan aaj PML-N aur PPP hakumto ka karza day raha hai, isi liye iski na-ahl hamkumat nakaam hai abi tak."
 
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Norwegian

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Well, that seems to be the only shor-sharaaba that the PTI Government from the Prime Minister to a PTI chamcha on PDF is making for more than two-year.

"Dekho dekho, Cartoon-e-Azam PM Imran Khan aaj PML-N aur PPP hakumto ka karza day raha hai, isi liye iski na-ahl hamkumat nakaam hai abi tak."
Pakistan has never paid almost half of total budget on previous govt loans

Now you can finally thank your favorite Khota Biryani govt
 

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