ISLAMABAD: The current government has obtained foreign loans tune the tune of $9,750.87 million since it took over the charge — a period spanning from June, 2013 to September 30, 2015.
Bonds worth of $ 3,499.35 million and loan from the International Monetary Fund (IMF) worth of $ 4,769.10 million is not including in this amount. The State Bank is the custodian of the loan. The loan on becoming due will be repaid in US dollar amount from the foreign exchange reserves of the government.
“As per rules Rules of Business, the Economic Affairs Division plays core function for assessment of requirements, programming and negotiations of external economic assistance and technical assistance from foreign governments and multilateral agencies” a well placed official source at Finance Ministry told this scribe saying that EAD also monitored and evaluated aid requirements in collaboration and consultation with line ministries and agencies and provincial governments.
EAD has a mechanism of holding bi-annual or annual reviews with bilateral partners to review all foreign funded projects including the technical assistance.
Necessary directions are given to implementing agencies and provincial governments and ministries to ensure that the projects are completed efficiently and in line with the arrangements agreed by the Government of Pakistan under the bilateral agreement.
EAD also keeps a close liaison with the donors and executing agencies for proper implementation of the technical assistance. However, the source said that government had taken numerous measures to repay the foreign loans and after contracting of foreign loan, budget estimates were prepared for repayment of the loans on the basis of amortization schedule attached with the loan agreement.
The repayment of principal, interest and other obligations as envisaged in the foreign loan agreement is made on the due dates. Sufficient budgetary provision is ensured for the purpose of debt servicing during the budget cycle.
The IMF loan taken by the government was exclusively to build foreign exchange reserves of the Government. The loan cannot and has not been used by GOP for budgetary support needs and is shown as part of the Foreign Exchange Reserves, presently at $ 19.919 billion.
