Imran Khan Government competed its one year in office, and guess what? The Naya Pakistan earned a new milestone by breaking all records for borrowing money. Amid the economic crisis, Pakistan government in its first tenure has a debt of 32,240 billion Pakistan Rupees.
A record-breaking Borrowing
The State Bank of Pakistan has revealed that Imran Khan’s government has broken all previous records in borrowing money merely in the first year of its tenure. A sum of 7,509 Pakistan Rupees was recorded in the increase of the total debt of the country. A report said, between August 2018 and August 2019, the government has borrowed Rs 2,804 billion from foreign sources and Rs 4,705 billion from domestic sources.
The State Bank of Pakistan revealed that there was a 1.43 percent increase in the public debt in the first two months of the current fiscal year. The debt of the federal government has reached Rs 32,240 billion that was Rs 24,732 billion in August last year.
China marks 75% of total loan of Pakistan
Earlier this year Pakistan revealed that it has taken a total debt of USD 6.5 billion from China in the current fiscal year. It is 75% of the total foreign loan taken by Pakistan which is USD 8.6 billion. Moreover, Out of the USD 6.5 billion, China gave USD 2 billion in SAFE deposits and USD 2.53 billion in foreign commercial loans. Apart from China Pakistan received USD 3 billion from Saudi Arabia and USD 2 billion from the United Arab Emirates but these loans were not disclosed.
Pakistan received USD 380 million from the Asian Development Bank and received USD 250 million from the World Bank this April. Additionally, the Islamic Development Bank (IDB) also disbursed an additional USD 35 million, which took its total loans for Pakistan to USD 578 million from April to May.
The government’s tax collection in the first quarter of the current fiscal was Rs 960 billion while the target was Rs 1 trillion, the report said.