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KARACHI: The government has announced to raise just Rs200 billion through auction of Pakistan Investment Bonds (PIBs) in the last two months (May-June) of this fiscal year against the maturity of Rs1.392 trillion, reflecting a shortfall of Rs1.192tr.
Working under mounting pressure of the IMF to keep the fiscal deficit within the limit, the government is trying to reduce the weight of PIBs in its huge debt that has reached close to Rs4.8tr.
Published in Dawn, May 4th, 2016
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Comments (4) Closed
May 04, 2016 10:17am
With 4,800,000,000,000 (4.8 Trillion ) Rupees in PIBs, we approximately pay around 8% or more interest to PIB holders annually making it 384 Billion (384,000,000,000) which is the cost of financing to the public treasury. May I ask the government how it utilises 4.8 trillion to generate at least 384 billion to pay its cost or this cost is charged to public funds?
Well done Democracy, sooner or later, I see a financial collapse of Pakistan
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May 04, 2016 10:43am
When has Pakistan's elite tried to keep the fiscal debt within limits? The well is running dry. Time for the rich to invest in Pakistan instead of investing their fortunes abroad.
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May 04, 2016 11:34am
When you have inexperience finance minister, this is what happens. He is not a tecnocrate but relative of PM.
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May 05, 2016 09:44pm
@khi1991 : There are some PIB's on which the interest rates are more than 8% per year, even up to 13% per year. So the amount of interest paid on PIB's alone would be somewhere in excess of Rs. 500 billion.
Every year, the percentage of revenue in the budget allocated to interest payments increases. It is already unsustainable.
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