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PTI Govt Retired a Record $9.5 Billion in Loans During Its First Year

313ghazi

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Pakistan Tehrik e Insaf (PTI) led federal government has retired foreign loans worth $9.5 billion during its first year in power.

Minister of State for Revenue, Hammad Azhar, made this revelation in National Assembly on Friday.

Hammad rubbished the opposition’s claim that the government obtained domestic loans Rs. 7,000 billion or Rs. 10,000 billion during its first year. He said it was a completely wrong and highly exaggerated statement.

He explained that unlike the opposition’s claim, the country’s foreign loans rose by $2.7 billion as compared to last year of Pakistan Muslim League-Nawaz (PML-N) government when foreign debts increased by over $7 billion.

He said that the government had already shared the debt profile in the house which has the details of all debts.

Azhar went on to highlight the fact that during the last ten years, Pakistan’s total debt and liabilities had risen from Rs. 6,100 billion to Rs. 31,000 billion.

The minister mentioned that the previous government had laid economic landmines for them by taking a record number of loans.

“For icing on the cake, the PML-N government also changed the country’s debt profile, and long term commercial loans were converted into short term commercial loans,” he explained.

Hammad went to say that the move made survival impossible for the incumbent government as it faces the extra burden of repayment of those debts maturing this year and the year to come.

https://propakistani.pk/2019/06/28/...cord-9-5-billion-loans-during-its-first-year/
 

Sugarcane

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Good Job, but at the moment government is just juggling the loans - Taking new one to retire old one. As government have got some relief on Forex front, I hope we will see actual structural reforms taking place this year to address fundamental problems, otherwise next government will be taking loans to retire loans taken by current one even on harder terms.
 

Cornered Tiger

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but at the moment government is just juggling the loans - Taking new one to retire old one.
On better terms, and gives breathing space for some time to manage economy and generate income. By the time new loan matures, i.e. 3 to 4 years, hoping to have good exchange rate to lessen the burden on economy. Reforms are on the way, you will see in 3 years. In 2020, current account deficit will remain $7 Billions, will be a big achievement, broadening of tax base will be a big crown on PTI, if happened.
 

Yaseen1

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every govt has to retire loans of previous govt ,this is not exception which this govt is doing but it should not decrease economic growth otherwise it is better to reschedule loan repayment through negotiation with lenders and buildup economy for a time being which will help in long run to come out of debt.Only repayment by taking more loans is temporary solution and will damage economy in longrun if growth slows down
Despite repayment external debt is increasing and has increased by 6.84 billion usd
https://www.ceicdata.com/en/indicator/pakistan/external-debt
 
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TRNDSTTR

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Taking exorbitant taxes on the Pakistani middle and lower class doesn't hurt either.
 

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