ISLAMABAD, Oct 1: The finance department has claimed that the government’s claim that the external debt and liabilities have declined by more than $2.5 billion was correct and former finance minister Ishaq Dar’s assertion otherwise was incorrect.

In a clarification of the news item published in Dawn on Wednesday quoting PML-N parliamentary leader in the Senate, Ishaq Dar, the finance department said the figures provided to the Senate were in reply to a question of PML Senator Chaudhry Mohammad Anwar Bhinder, which pertained to the IMF and other foreign debts and not the total outstanding external debt and foreign exchange liabilities of Pakistan.

It said Mr Dar had misunderstood that the amount stated in the answer was the country’s total debt and liabilities and as such he wrongly faulted the government in its success of reducing the country’s debt burden.

It said: “Pakistan’s external debt and foreign exchange liabilities stood at $37.918 billion at end June, 2000, it declined to $37.139 billion in end June 2001, further declined to $36.532 billion in end June 2002, and even further declined to $35.474 billion in end June 2003.

“What the numbers stated in the response was one component of the total external debt and liabilities. The answer was consistent with the question asked by the senator, the claim made by the government that external debt and liabilities have declined by more than $2.5 billion was correct.

It may be further noted that as a result of the strong build-up in foreign exchange reserves, Pakistan is now in a position to pre-pay expensive debt and accordingly in the current fiscal year, $1 billion expensive external debt will be paid up over and above the normal debt servicing.”