Govt’s borrowing frenzy continues | Pakistan Today

Govt’s borrowing frenzy continues

With Pakistan sinking deep into the debt trap, the federal government is all-set to get new foreign loans amounting to $44 billion for various on-going and future projects.

Pakistan’s economy has been running mainly on loans for a long time now. For the first time in history, the state is under the debt of Rs 20 trillion, media reports claimed.

According to the reports, current government has taken Rs 3,891 billion in internal and external loans and every Pakistani citizen is now under Rs 100,000 debt. A few days ago, Federal Finance Minister Ishaq Dar had stated: “We are taking loans to get rid of previous loans.”

According to the document available with Pakistan Today, China will provide loan amounting to $14.72 billion to Pakistan for various on-going projects under the China-Pakistan Economic Corridor (CPEC).

Out of the total $14.72 billion loans, $8.854 billion will be provided for on-going projects, whereas $5.883 for the projects in the pipeline.

ONGOING PROJECTS:

China will provide loan amounting to $6.089 billion for Karachi Nuclear Power project, $448 million for Neelum Jhelum Hydropower project, $16million for Educational projects, $94.21 million in additional financing for Karakoram Highways (KKH) Improvement project, $37.68 million for Fiber Optic Cross Border project, $300 million for Urban infrastructure Development package 1 and 2 AJK, Safe City Islamabad project $136 million, $1474 million for Chashma Nuclear Power Project C3-C4 (Mixed Credit) and $259 million for Realignment of KKH Improvement.

UPCOMING PROJECTS:

China will provide loan worth $1.626 billion for Lahore Orange Line Metro Train project, $2.340 billion for construction of Lahore-Karachi motorway section from Multan to Sukkur, $140 million for the Gwadar Eastbay Expressway project, $220 million for New Gwadar International Airport project, $15 million for Procurement of Irrigation Machinery for Irrigation Infrastructure, $ 576 million in additional finance for 969MW Neelum Jhelum Hydropower project, $156 million for Pakistan Remote Sensing Satellite (PRSS) project and $810 million for KKH Phase II.

According to the document, Word Bank (WB) will provide loan worth $10.74 billion to the country for the on-going and upcoming projects of which $4.905 billion is for on-going projects, while $5.844 is for the projects in the pipeline.

Asian Development Bank (ADB) will give Pakistan loan worth $7.71 billion of which $4.959 billion will be provided for on-going projects and $2.765 billion for projects in the pipeline.

Additionally, Japan International Cooperation Agency (JICA) will provide loan worth $5.40 billion of which $1.266 billion will be provided for on-going projects and $4.141 billion be given for projects in the works.

Islamic Development Bank will give $5.40 billion loan to Pakistan for various on-going and upcoming projects. Out of the total $5.40 billion loan, $5.214 billion loan will be being provided for on-going projects, while $320 million for projects in the pipeline.

The government had made tall claims about breaking the begging bowl before it came to power. But instead the country is sliding further into the debt trap on its watch.

–HAMID KHAN WAZIR



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