June 25, 2002	Tuesday	Rabi-us-Sani 13, 1423

LAHORE, June 24: The total quantum of outstanding debt of Punjab, as shown in the provincial budget for the fiscal year 2002- 2003, stood at Rs127.283 billion, showing an accumulation of over 225 per cent as compared to the financial year 1991-92.

The break-up of the total debt amount suggests that Rs85.962 billion has got accumulated on account of cash development loan while Rs41.321 billion have been accrued on account of foreign loans at the end of financial year 2001-2002.

Almost 67.54 per cent of the total liability is on account of the rupee loans owed by provincial government to federal government. The government paid mark-up at the rate of 11.11 per cent on CDL, which was nearly four per cent less than the interest rate paid in 2000-01.

A total of Rs13.477 billion was paid towards debt servicing along with the principal amount of Rs4.109 billion making the total payments running into about Rs17.588 billion on account of debt servicing. Out of such amount the domestic payments component was Rs15.777 billion against the foreign component of Rs1.810 billion.

Loan Advancement: The budget figures have further shown that the provincial government advanced loans amounting to Rs1.875bn against the budgeted amount of Rs282.162m to the LDA, WASA, the Punjab Vocational Training Council, the LDA/ UD Wing, the PHA and the PSIC being the major beneficiaries.

Overdraft: As claimed in the budget, the government did not avail of any overdraft facility from the State Bank of Pakistan owing to its stable financial position as latter had sanctioned a maximum annual limit of Rs500 billion for the former for overdraft in 1994.

Recovery of Loans: The loan recovery of the government rose by Rs994.753m during 2001-02 with amount increasing from Rs833.029m to Rs1.827bn during 2001-02. Such recoveries were made on different short-term and medium-term loans sanctioned to the growers for purchase of agricultural equipment and inputs, loans to government employees for purchase, repair and construction of houses and for purchase of motor cars, motorcycles and bicycles, loans to local bodies for financing their water supply, sewerage and drainage schemes.