ISLAMABAD, June 16: The federal government has projected to make total gross loans and advances, both for current and development, to the tune of Rs79 billion during 2002-03.
This would be around 14 per cent higher than the budget estimates of Rs69.4bn or 26 per cent more than revised estimates of Rs62.55bn during 2001-02, budget documents suggest.
This also include Rs12bn current loans to Sindh and NWFP governments under structural adjustment credit, Rs3.5bn for Azad Kashmir as “Ways and Means Advances” to Azad Kashmir and Rs4.5bn loan to KESC.
The financial assets of the federal government consist of investible funds and loans provided to the provincial governments, Azad Kashmir various agencies and corporations to meet their loans and investment requirements.
In some cases, the federal government obtains soft term loans from donor agencies and relend it to the provinces or corporations on higher interest rates.
On other occasions, the federal government just comes in to bail out various corporations or provinces from defaults or meet their emergency requirements without interest.
The total development loans and advances (including external and internal) are projected to nominally decrease to Rs56.748bn during the next fiscal from budget estimates of Rs60.75 during 2001-02 and slightly higher than revised estimates of Rs53bn.
Development loans and advances by the federal government increased to Rs17.5bn in budget estimates 2002-03 from Rs16bn in revised estimates 2001-02, showing an increase of 9.1 per cent.
External loans increased to Rs39.3bn in budget estimates 2002-03 from Rs37.1bn revised estimates 2001-02, showing an increase of 5.7 per cent.
These loans and advances are made to the provinces, Azad Kashmir, financial and non-financial institutions, local bodies and others to assist them in carrying out their development efforts by meeting development financial requirements.
For the year 2002-03, Rs22.257bn have been projected for current loans against revised estimates of Rs9.3bn during 2001-02, showing an increase of over 137 per cent.
Of the total Rs22.3bn in 2002-03, current interest-free loan to Wapda for payments to Hubco amount to Rs17 million, Rs1.3bn loans to government servants, Rs600m to friendly countries, Rs50m as Qarze Hasna for education, Rs67m for Microfinance Bank and Corporate Industrial and Restructuring Corporation and Rs200m as loan to Sindh government for Lyari Express Way.
The federal miscellaneous investment in 2002-03 has decreased from last year’s budget allocations. The investment for the year 2002-03 has been estimated at RS9.1bn as compared to Rs20.7bn for the year 2001-02.
