Endless debt? The government signed loan agreements worth $ 10.5 billion in fiscal year 20

According to the annual report on foreign economic assistance released by the Ministry of Economic Affairs, Economic Affairs Division (EAD), the Government of Pakistan (GOP) has signed new agreements worth $ 10.4 billion with various development partners and foreign banks, up from $ 8.4 billion last year. year, registering a growth of 23.8%.

The highest contribution to loans comes from commercial banks, followed by the Asian Development Bank (ADB), World Bank (WB), etc.

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In total, the government of Prime Minister (PM) Imran Khan signed new contracts worth $ 18.9 billion in his first two years in office, excluding the deal with the IMF. Under the new agreements, development partners are likely to disburse the committed amount over the next five to six years.

In fiscal year 2019-2020 (FY20), an amount of $ 10.7 billion was disbursed by multilateral and bilateral development partners and foreign banks. Over two-thirds of total disbursements came from multilateral and bilateral development partners such as Asian Development Bank (ADB), World Bank (WB), Asian Infrastructure Investment Bank (AIIB), China, Saudi Arabia and UK etc.

The government also paid an amount of $ 10.4 billion in fiscal year 20 in respect of the external public debt service, including a principal amount of $ 8.5 billion and the payment of interest. of $ 1.9 billion.

Image source: The Kootneeti, EAD

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