ISLAMABAD: In the absence of credit lines from the international lenders during the last two to three years, Pakistan’s total domestic borrowing has exceeded its foreign debt.
Secretary Economic Affairs Division (EAD) Dr Waqar Masood briefing the National Assembly Standing Committee on EAD on Monday said that domestic borrowings had exceeded the foreign debt, and the country’s total debt had reached up to $130 billion.
“We have to repay between $125 billion and $130 billion as the borrowings are on the rise and the government has to take loans from domestic lenders,” he explained.
The meeting, chaired by Malak Azmat Khan, was informed that World Bank and Asian Development Bank had stopped their programmes and the government was trying to negotiate for a restart.
The committee was informed that Pakistan had received $1.2 billion foreign assistance from July to December 2011 against the total estimates of $3.7 billion made in the federal budget 2011-12.
“Out of the total foreign assistance of $1.2 billion received during the first six months of the current fiscal year, $552.5 million were received from the bilateral donors while $635 million have been received from the multilateral donors,” Dr Masood said.
He added that during the same period last fiscal year total foreign assistance received from July-December 2010 was $679.2 million, which showed that the assistance received this year had increased.
During the first six months of 2011-12, the Asian Development Bank (ADB) disbursed $237 million, the World Bank $ 229 million, China $323 million while Japan released $101 million. Meanwhile, NADRA has been provided $10 million grant by the World Bank under Citizen’s Damage Compensation Programme (CDCP).
While responding to an objection raised by MNA Sufyan Yusaf, the Secretary claimed that the assistance received from USA from July-December 2011 was much less than the assistance received during the same corresponding period last year.
“From July-December 2011, the USA has released $ 40.9 million while it disbursed $125.8 million during the first six months of the last fiscal year”, he added.
From July-December 2011, Australia released $0.1 million, France $1.6 million, Germany $19.7 million, Korea $101.2 million, Saudi Arabia $49.7 million, and UK disbursed $4 5.1 million, the meeting was informed.
Pakistan is going to become the world’s largest recipient of UK assistance as it was going to enter a program of 1.3 billion pounds with this bilateral for the next five years.
Giving further details, Secretary EAD said that since 2005, Saudi Arabia has disbursed $442 million against the pledged amount of $1.1 billion. Kuwait has disbursed $ 108 million against the pledged $247 million. South Korea has disbursed $18 million against $261 million pledged amount. Turkey has disbursed $16 million against the pledged $100 million. Iran disbursed nothing but pledged $330 million.