June 15, 2003	Sunday	Rabi-us-Sani 14, 1424

LAHORE, June 14: Punjab’s debt stock has gone up to a staggering Rs131.218 billion during the current fiscal from Rs56.806 billion in 1991-92.

The provincial government will spend Rs30.632 billion on debt servicing in the next financial year, up by about Rs13 billion allocated for debt servicing in 2002-03.

In the meanwhile, the Punjab government’s liability on account of General Provident Fund accumulations has shot up to Rs15.056 billion, according to the budget documents for the year 2003-04. “Unsustainably high interest on GP Fund and enhanced rates of subscriptions have added to the gravity of the debt-servicing problem,” the documents say. The GP Fund stock is estimated to shoot up to Rs15.511 billion in 2004-05 and then come down to Rs5.640 billion in 2008-09.

The province’s debt stock, excluding GP Fund liability, comprises a foreign loan component of Rs47.476 billion and cash development loans of Rs83.742 billion.

The provincial government has drawn up a plan to manage its debt and arranged a foreign assistance of Rs15 billion to repay principal amount of some of the high cost loans during 2003-04.